Consider a lottery with three possible outcomes: a payoff of -10, a payoff of 0, and a

Question:

Consider a lottery with three possible outcomes: a payoff of -10, a payoff of 0, and a payoff of +20. The probability of each outcome is 0.2, 0.5, and 0.3, respectively.
a) Sketch the probability of this lottery.
b) Compute the expected value of the lottery.
c) Compute the variance and the standard deviation of the lottery.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...