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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 -25%   Below average 0.2 -8   Average 0.4 7   Above average 0.2 35   Strong 0.1 60     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.___%

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 -25%   Below average 0.2 -8   Average 0.4 7   Above average 0.2 35   Strong 0.1 60     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.___%

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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 -25%  
Below average 0.2 -8  
Average 0.4 7  
Above average 0.2 35  
Strong 0.1 60  
  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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