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(Expected return and isk) Universal Corporation is planning to invest in a security that has several possible rates of return. Given the probability distribution of

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(Expected return and isk) 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, EEB, 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.) b. The standard deviation of the returns is | %. (Round to two decimal places.) c. What do the resulting numbers represent? (Select the best choice below.) 0 A, O B. ? C. O D. Universal could expect a return of 18 50 percent with a 67 percent possibility that this return would vary up or down by 882 percent Universal could expect a return of 8.82 percent with a 67 percent possibility that this return would vary up or down by 18.50 percent Universal could expect a return of 18 50 percent with a 25 percent possibility that this return would vary up or down by 8.82 percent. Universal could expect a return of 8.82 percent with a 25 percent possibility that this return would vary up or down by 18.50 percent. Data Table PROBABILITY 0.05 0.15 0.25 0.55 RETURN -10% 10% 15% 25% (Click on the icon located on the top-right comer of the data table above in order to copy its contents into a lick to select your an spreadsheet)

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