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Calculate the standard deviation of the return

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Reference no: EM131706822

The probability distribution of the return on an investment in Omega Inc.'s common stock is as follows:

Return Probability -2% .05
4% .20 10% .50 12% .20 15% .05

Graph the probability distribution. Calculate the expected return, and the standard deviation of the return. (Notice that to make the calculations manageable, we've made the unrealistic assumption that the probability distribution of returns is discrete.)

Reference no: EM131706822

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