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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 -30% Below average 0.2 -6 Average 0.4 12 Above average 0.2 35 Strong 0.1 70 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. %

Financial Management, Finance

  • Category:- Financial Management
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