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Click here to read the eBook: Measuring Risk for Discrete Distributions Problem 6-5 Expected Return: Discrete Distribution A stock's return has the following distribution: Demand
Click here to read the eBook: Measuring Risk for Discrete Distributions
Problem 6-5 Expected Return: Discrete Distribution
A stock's return has the following distribution:
| Demand for the Company's Products | Probability of This Demand Occurring | Rate of Return if This Demand Occurs (%) | ||
| Weak | 0.1 | -40% | ||
| Below average | 0.2 | -9 | ||
| Average | 0.4 | 9 | ||
| Above average | 0.2 | 30 | ||
| Strong | 0.1 | 60 | ||
| 1.0 | ||||
Calculate the stock's expected return. Round your answer to two decimal places. %
Calculate the standard deviation. Round your answer to two decimal places. %
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