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Expected Return: Discrete Distribution A stock's return has the following distribution: Calculate the standard deviation based on the information given below: Demand for the Probability
Expected Return: Discrete Distribution A stock's return has the following distribution: Calculate the standard deviation based on the information given below:
Demand for the | Probability of This | Rate of Return if This | ||
Company's Products | Demand Occurring | Demand Occurs (%) | ||
Weak | 0.1 | -40% | ||
Below average | 0.2 | -8 | ||
Average | 0.4 | 8 | ||
Above average | 0.2 | 25 | ||
Strong | 0.1 | 70 |
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