Question: Problem 7: Assume that next year your return can be 20% with probability 0.3; 10% with probability 0.4; 0% with probability 0.2 and -20% with

Problem 7: Assume that next year your return can be 20% with probability 0.3; 10% with probability 0.4; 0% with probability 0.2 and -20% with probability 0.1. Find your expected return. Problem 8: Using the information in the previous question, find standard deviation of your return.

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