An analyst developed the following probability distribution for the rate of return for a common stock.   Scenario Probability   Rate of Return 1 0.25   -15%     2 0.35   5%     3 0.40   10%       a. Calculate the expected rate of return. (Round intermediate calculations to at least 4 decimal places.)    b. Calculate the variance and the standard deviation of this probability distribution. (Round your final answer to 2 decimal places.)

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An analyst developed the following probability distribution for the rate of return for a common stock.
 

Scenario Probability   Rate of Return
1 0.25   -15%    
2 0.35   5%    
3 0.40   10%    
 


a. 
Calculate the expected rate of return. (Round intermediate calculations to at least 4 decimal places.)
  
b. 
Calculate the variance and the standard deviation of this probability distribution. (Round your final answer to 2 decimal places.)

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