2-5 Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Company's Products Weak Below average Average Above average Strong Probability of This Demand Occurring Probability 0.3 0.4 0.3 0.1 0.2 0.4 0.2 0.1 1.0 Calculate the stock's expected return and standard deviation. 2-6 Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: YM Rate of Return if This Demand Occurs (%) -50% -5 16 25 60 15% 9 18 20% 5 12 a. Calculate the expected rates of return for the market and Stock J. b. Calculate the standard deviations for the market and Stock J. 2-9 Yo en stc stc 2-10 Po Su fo 2-12 If W Challe 2-11 P Y 0 S to b R

2-5 Expected Return: Discrete Distribution A stock's return has the following distribution: Calculate the stock's expected return and standard deviation. 2-6 Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: a. Calculate the expected rates of return for the market and Stock J. b. Calculate the standard deviations for the market and Stock