6-1. (Expected return and risk) Universal Corporation is planning to invest in a secu- rity that has several possible rates of return. Given the following probability distribu- tion of returns, what is the expected rate of return on the investment? Also compute

the standard deviations of the returns. What do the resulting numbers represent? Probability Return 0.10 -10% 0.20 5% 0.30 10% 0.40 25%