Question
You pay $10 to play a coin toss game with a special coin. The payoffs are shown in the table below: Probability Payoff Head 40%
You pay $10 to play a coin toss game with a special coin. The payoffs are shown in the table below:
Probability Payoff
Head
40% $30
Tail
60%. $0
What is the expected return from this game?
What is the standard deviation of this game's return? (Hint: calculate the return when you have a head and the return when you get a tail first.)
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
5th edition
9780133851281, 013385129x, 9780134077321, 133866297, 133851281, 9780133851298, 134077326, 978-0133866292
