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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
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 | -7 | |||
Average | 0.4 | 13 | |||
Above average | 0.2 | 25 | |||
Strong | 0.1 | 50 | |||
1.0 |
Calculate the stock's expected return and standard deviation. Do not round intermediate calculations. Round your answers to two decimal places.
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