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The probability of a hot summer is 0.2. The probability of a moderately warm summer is 0.6, whereas the probability of a wet and cold
The probability of a hot summer is 0.2. The probability of a moderately warm summer is 0.6, whereas the probability of a wet and cold summer is 0.2. If a hot summer occurs then the return on shares in the Ice Cream Manufacturing Company will be 30%. If moderately warm the return will be 15%, and if cold 2%. a. What is the expected return? b. What is the standard deviation of that return?
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