1. A game of chance offers the following odds and payoffs. Each play of the game costs

$100, so the net profit per play is the payoff less $100.

Probability Payoff Net Profit .10 $500 $400 .50 100 0 .40 0 ⫺100 What are the expected cash payoff and expected rate of return? Calculate the variance and standard deviation of this rate of return.