Question: 5) You are considering security with the following possible rates of return Probability Return (%) 0.10 8.5 0.30 12.6 0.40 14.7 0.20 22.3 Calculate the

5) You are considering security with the following possible rates of return

Probability

Return (%)

0.10

8.5

0.30

12.6

0.40

14.7

0.20

22.3

  1. Calculate the expected rate of return
  2. Calculate the standard deviation of the return

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