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BEN 201-03! Principles of Finance Spring 2020) Lohor Thompson 03/08/20 6:58 PM Homework: Chapter 6 HW Save Score: 0 of 1 pt 9 of 23

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BEN 201-03! Principles of Finance Spring 2020) Lohor Thompson 03/08/20 6:58 PM Homework: Chapter 6 HW Save Score: 0 of 1 pt 9 of 23 (0 complete) HW Score: 0%, 0 of 23 pts Problem 6-1 (similar to) Question Help (Expected return and risk) Universal Corporation is planning to invest in a security that has several possible rates of return. Given the probability distribution of returns in the popup window. . what is the expected rate of return on the investment? Also compute the standard deviation of the returns. What do the resulting numbers represent? a. The expected rate of return on the investment is % (Round to two decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) PROBABILITY 0.10 0.20 0.30 0.40 RETURN - 5% 0% 5% 15%

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