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What is the expected rate of return on the investment

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Reference no: EM133000422

Question - Universal Corporation is planning to invest in a security that has several possible rates of return. Given the probability distribution of returns in the popup window, what is the expected rate of return on the investment? Also compute the standard deviation of the returns. What do the resulting numbers represent?

PROBABILITY

RETURN

0.10

-5?%

0.20

0?%

0.30

5?%

0.40

20?%

Reference no: EM133000422

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