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Please solve step by step all the sections that need to be answered in the question. (Expected return and risk) Universal Corporation is planning to
Please solve step by step all the sections that need to be answered in the question.
(Expected return and risk) 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, 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 11.75 %. (Round to two decimal places.) b. The standard deviation of the returns is %. (Round to two decimal places.) - Data table (Click on the following icon in order to copy its contents into a spreadsheet.) RETURN - 10% PROBABILITY 0.05 0.15 0.25 0.55 0% 5% 20%Step by Step Solution
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