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Problem 6-5 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
Problem 6-5 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 | -30% | ||
Below average | 0.2 | -7 | ||
Average | 0.4 | 11 | ||
Above average | 0.2 | 35 | ||
Strong | 0.1 | 55 | ||
1.0 |
Calculate the standard deviation. Round your answer to two decimal places.
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