Question: Please answer using excel. Also please include steps used to solve each. Thank you! 9. A game of chance offers the following odds and payoffs:

Please answer using excel. Also please include steps used to solve each. Thank you!

9. A game of chance offers the following odds and payoffs:

Probability Payoff

0.2 $500

0.4 100

0.4 0

a) What is the expected cash payoff?

b) Suppose each play of the game costs $100. What is the expected rate of return?

c) What is the variance of the expected returns?

d) What is the standard deviation of the expected returns?

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