2-2: Measuring Risk for Discrete Distributions

Problem 2-5 Expected Return: Discrete Distribution

A stock's return has the following distribution:

Demand for the Company's Products	Probability of This Demand Occurring			Rate of Return if This Demand Occurs (%)
Weak		0.1		-30%
Below average		0.2		-7
Average		0.4		18
Above average		0.2		35
Strong		0.1		65
		1.0

Calculate the stock's expected return. Round your answer to two decimal places. %

Calculate the standard deviation. Round your answer to two decimal places. %