Question: Expected Return: Discrete Distribution A stock's return has the following distribution: Probability of This Demand Occurring, Rate of Return if This Demand Occurs (%) Demand

Expected Return: Discrete Distribution

A stock's return has the following distribution: Probability of This Demand Occurring, Rate of Return if This Demand Occurs (%) Demand for the Company's Products: Weak Probability of This Demand Occurring:0.1 Rate of Return if This Demand Occurs (%): -50 % Demand for the Company's Products: Below average Probability of This Demand Occurring: 0.2 Rate of Return if This Demand Occurs (%) : -9 Demand for the Company's Products: Average Probability of This Demand Occurring: 0.4 Rate of Return if This Demand Occurs (%) : 8 Demand for the Company's Products: Above average Probability of This Demand Occurring: 0.2 Rate of Return if This Demand Occurs (%) : 25 Demand for the Company's Products: Strong 0.1 Rate of Return if This Demand Occurs (%) : 50

total for probability of this demand occurring 1.0

Calculate the stock's expected return. Round your answer to two decimal places.

%

Calculate the standard deviation. Do not round intermediate calculations. Round your answer to two decimal places.

%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!