Question: Given the following probability distribution, what are the expected return and the standard deviation of returns for Security J? State Pi ri 1 0.5 9%

Given the following probability distribution, what are the expected return and the standard deviation of returns for Security J?

State Pi ri

1 0.5 9%

2 0.4 4%

3 0.1 23%

Group of answer choices

a) 7.40%; 4.81%

b) 6.40%; 6.01%

c) 7.90%; 5.11%

d) 6.90%; 5.71%

e) 8.40%; 5.41%

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