Question: eBook Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return

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Expected Return: Discrete Distribution

A stock's return has the following distribution:

Demand for the Company's Products Probability of This Demand Occurring Rate of Return if This Demand Occurs (%)
Weak 0.1 -50 %
Below average 0.2 -8
Average 0.4 9
Above average 0.2 25
Strong 0.1 75
1.0

Calculate the stock's expected return and standard deviation. Do not round intermediate calculations. Round your answers to two decimal places.

a. Expected return: %

b. Standard deviation: %

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