Question: 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
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 | -25% | ||
| Below average | 0.2 | -8 | ||
| Average | 0.4 | 6 | ||
| Above average | 0.2 | 30 | ||
| Strong | 0.1 | 60 | ||
| 1.0 | ||||
Calculate the stock's expected return. Round your answer to two decimal places. 10.3 %
Calculate the standard deviation. Round your answer to two decimal places.
???? %
I was able to answer the first question but not the second. Could you help please?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
