An analyst developed the following probability distribution for the rate of return for a common stock. Probability 0.24 0.39 0.37 Scenario 2 3 a. Calculate the expected rate of return. (Negative value should be indicated by a minus sign. Round intermediate calculations to at least 4 decimal places. Round your answer to 2 decimal places.) Rate of return Rate of Return -15% 0% 18% Variance Standard deviation % b. Calculate the variance and the standard deviation of this probability distribution. (Round intermediate calculations to at least 4 decimal places. Round your final answers to 2 decimal places.) %^2 %

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An analyst developed the following probability distribution for the rate of return for a common stock.
Probability
0.24
0.39
0.37
Scenario
2
3
a. Calculate the expected rate of return. (Negative value should be indicated by a minus sign. Round intermediate calculations to at
least 4 decimal places. Round your answer to 2 decimal places.)
Rate of return
Rate of Return
-15%
0%
18%
Variance
Standard deviation
%
b. Calculate the variance and the standard deviation of this probability distribution. (Round intermediate calculations to at least 4
decimal places. Round your final answers to 2 decimal places.)
%^2
%
Transcribed Image Text:An analyst developed the following probability distribution for the rate of return for a common stock. Probability 0.24 0.39 0.37 Scenario 2 3 a. Calculate the expected rate of return. (Negative value should be indicated by a minus sign. Round intermediate calculations to at least 4 decimal places. Round your answer to 2 decimal places.) Rate of return Rate of Return -15% 0% 18% Variance Standard deviation % b. Calculate the variance and the standard deviation of this probability distribution. (Round intermediate calculations to at least 4 decimal places. Round your final answers to 2 decimal places.) %^2 %
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