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Your younger siblings have decided to set up a lemonade stand tomorrow to fund their Christmas consumption. The total initial investment required for this venture
Your younger siblings have decided to set up a lemonade stand tomorrow to fund their Christmas consumption. The total initial investment required for this venture is $100. The weather report suggested a 60% probability of a sunny day, 25% probability of a cloudy day, and a 15% probability of rain. If it's a sunny day, your siblings expect to make $50. However, if it's cloudy or rainy, they expect to make $10 and $2 respectively. As a university finance student, you are asked by your siblings to calculate the expected return and standard deviation of this lemonade venture
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