Question: Please HELP! I got the first part but confused on the 2nd part: Problem 6-05 Expected Return: Discrete Distribution A stock's return has the following
Please HELP! I got the first part but confused on the 2nd part:
Problem 6-05 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 | -6 | ||
| Average | 0.4 | 11 | ||
| Above average | 0.2 | 30 | ||
| Strong | 0.1 | 70 | ||
| 1.0 | ||||
Calculate the stock's expected return. Round your answer to two decimal places. %11.2
Calculate the standard deviation. Round your answer to two decimal places. %
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