Question: Assume that next year your return can be 20% with probability 0.3; 10% with probability 0.4; 0% with probability 0.2 and -20% with probability 0.1.

Assume that next year your return can be 20% with probability 0.3; 10% with probability 0.4; 0% with probability 0.2 and -20% with probability 0.1.

a. Find your expected return.

b. find standard deviation of your return.

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