Risk and Return: Part I Intermediate Problems 5-10 (2-5) Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Probability of This Rate of Return if This Company's Products Demand Occurring Demand Occurs (%) Weak 0.1 -50% Below average 0.2 -5 Average 0.4 16 Above average 0.2 25 Strong 0.1 60 1.0 Calculate the stock's expected return and standard deviation. (2-6) Expected Returns: Discrete Distribution