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Universal Corporation is planning to invest in a security that has several possible rates of return. Given the probability distribution of returns in the table
Universal Corporation is planning to invest in a security that has several possible rates of return. Given the probability distribution of returns in the table below, 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____%
PROBABILITY RETURN 0.05 -10% 0.15 10% 0.25 15% 0.55 30%
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