A stock's return has the following distribution:

Calculate the stock's expected return and standard deviation

Demand for the Company's Product

Probability of this Demand Occurring

Rate of Return If this Demand Occurs (%)

Weak

0.1

-50%

Below Average

0.2

-5

Average

0.4

16

Above Average

0.2

25

Strong

0.1

60

1.0

A stock's return has the following distribution:

Calculate the stock's expected return and standard deviation

Demand for the Company's Product			Probability of this Demand Occurring			Rate of Return If this Demand Occurs (%)
Weak			0.1			-50%
Below Average			0.2			-5
Average			0.4			16
Above Average			0.2			25
Strong			0.1			60
			1.0