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Expected return A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand
Expected return
A stock's returns have the following distribution:
Demand for the Company's Products | Probability of This Demand Occurring | Rate of Return If This Demand Occurs |
Weak | 0.1 | -30% |
Below average | 0.2 | -10 |
Average | 0.4 | 14 |
Above average | 0.2 | 34 |
Strong | 0.1 | 57 |
1.0 |
- A) Calculate the stock's expected return. Round your answer to two decimal places.%
- B) Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places.%
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