A game of chance offers the following odds and payoffs. Each play of the game costs $200, so the net profit per play is the payoff less $200.

Probability: 0.20, 0.40, 0.40

Payoff:$700, $300,$0

Net Profit: $500, $100 , $?200

a-1. What is the expected cash payoff? Expected cash payoff $ 260 - Correct Answer

a-2. What is the expected rate of return? Expected rate of return 30 % - Correct Answer

b-1. Calculate the variance of this rate of return. (Round your answer to the nearest whole number.) Variance

b-2. Calculate the standard deviation of this rate of return. (Round your answer to the nearest whole percent.) Standard deviation %