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A game of chance offers the following odds and payoffs. Each play of the game costs $100, so the net profit per play is the payoff less $100.

Probability Payoff Net Profit

.1 0 $500 $400

.50 1 00 0

.40 0 -1 00

What are the expected cash payoff and expected rate of return? find out the variance and standard deviation of this rate of return.

Basic Finance, Finance

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