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Suppose a bank manager knows the rate of return on a loan portfolio (discrete random variable X) for different economic conditions. The manager also has
Suppose a bank manager knows the rate of return on a loan portfolio (discrete random variable X) for different economic conditions. The manager also has access to the probability for each and this is provided in the table below (where X is the value of the random variable and P(X) is the probability of X): Economic Condition X P(X) No Growth 0 0.2 Average Growth 5 0.6 Substantial Growth 10 0.2 Calculate the expected value of X and the variance of X. Make sure to show your work
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