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Consider the following probability distribution of returns for a proposed project that involves a new ultrasound machine: State of the Economy Probability of Occurrence

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Consider the following probability distribution of returns for a proposed project that involves a new ultrasound machine: State of the Economy Probability of Occurrence Rate of Return Very poor 0.20 -10.0% Poor 0.10 0.0 Average 0.20 10.0 Good 0.40 20.0 Very good 0.10 30.0 a. What is the expected rate of return on the project? b. What is the project's standard deviation of returns?

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