The following table shows the one-year return distribution of Startup, Inc. Calculate a. The expected return. b.

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The following table shows the one-year return distribution of Startup, Inc. Calculate

a. The expected return.

b. The standard deviation of the return.

Probability 40% 20% 20% 10% 10%

Return -120% -85% -40% -30% 1000%

AppendixLO1

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Corporate Finance The Core

ISBN: 9781292431611

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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