What is the standard deviation of the expected returns

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Question: A game of chance offers the following odds and payoffs. Each play of the game costs $200, so the net profit per play is the payoff less $200.

Probability	Payoff	Net Profit
.20	$700	$500
.40	200	0
.40	0	-200

a-1. What is the expected cash payoff?

a-2. What is the expected rate of return?

b-1. What is the variance of the expected returns?

b-2. What is the standard deviation of the expected returns?

Reference no: EM131794737

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