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eBook Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Company's ProductsProbability of This Demand OccurringRate of Return if This
eBook
Expected Return: Discrete Distribution
A stock's return has the following distribution:
Demand for the
Company's ProductsProbability of This
Demand OccurringRate of Return if This
Demand Occurs (%)Weak0.1-25%
Below average0.2 -6
Average0.4 12
Above average0.2 20
Strong0.1 55
1.0
Calculate the stock's expected return and standard deviation. Do not round intermediate calculations. Round your answers to two decimal places.
Expected return:%
Standard deviation:%
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