Question
Expected Return: Discrete Distribution A stock's return has the following distribution: Probability of This Demand Occurring, Rate of Return if This Demand Occurs (%) Demand
Expected Return: Discrete Distribution
A stock's return has the following distribution: Probability of This Demand Occurring, Rate of Return if This Demand Occurs (%) Demand for the Company's Products: Weak Probability of This Demand Occurring:0.1 Rate of Return if This Demand Occurs (%): -50 % Demand for the Company's Products: Below average Probability of This Demand Occurring: 0.2 Rate of Return if This Demand Occurs (%) : -9 Demand for the Company's Products: Average Probability of This Demand Occurring: 0.4 Rate of Return if This Demand Occurs (%) : 8 Demand for the Company's Products: Above average Probability of This Demand Occurring: 0.2 Rate of Return if This Demand Occurs (%) : 25 Demand for the Company's Products: Strong 0.1 Rate of Return if This Demand Occurs (%) : 50
total for probability of this demand occurring 1.0
Calculate the stock's expected return. Round your answer to two decimal places.
%
Calculate the standard deviation. Do not round intermediate calculations. Round your answer to two decimal places.
%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started