Question: Problem 6-5 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

Problem 6-5 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 -40%
Below average 0.2 -7
Average 0.4 12
Above average 0.2 30
Strong 0.1 55
1.0

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

Calculate the standard deviation. Round your answer to two decimal places. %

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