Question: An analyst developed the following probability distribution for the rate of return for a common stock. a. Calculate the expected rate of return. b. Calculate

An analyst developed the following probability distribution for the rate of return for a common stock.

An analyst developed the following probability distribution for the rate

a. Calculate the expected rate of return.
b. Calculate the variance and the standard deviation of this probability distribution.

Scenario Probability Rate of Return 0.25 0.35 0.40 15% 590 10%

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