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Expected return-discrete distribution

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Expected Return: Discrete Distribution

A stock's return has the following distribution:

Demand for the

Company's ProductsProbability of This

Demand OccurringRate of Return if This

Demand Occurs (%)Weak 0.1 -50% Below average0.2-5Average0.416Above average0.235Strong0.165 1.0

Calculate the stock's expected return and standard deviation. Do not round intermediate calculations. Round your answers to two decimal places.

Expected return: -------------%

Standard deviation: ----------------- %

 

Reference no: EM132589163

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