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A financial analyst following Singh, Inc. has created the following probability distribution to describe Singh's expected return over the next year. Singh's fortunes rely on

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A financial analyst following Singh, Inc. has created the following probability distribution to describe Singh's expected return over the next year. Singh's fortunes rely on the success of a new product. The probability distribution shown reflects the analyst's expectation of the stock's return depending on how well the new product sells Condition Probability Return Bad Average Great -40% 10% 4590 0.40 0.10 0.50 What is the expected return on the stock? 12.50% 19.00% o 2.00% o 22.50% 7.50% What is the expected standard deviation of stock returns? 40.07% 33.12% o 31.21% 24.23% 36.82%

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