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An analyst has developed the following probability distribution for the rate of return for a common...

An analyst has developed the following probability distribution for the rate of return for a common stock.

Scenario Probability Rate of Return
1 0.30 -5%
2 0.45 0%
3 0.25 10%

For these questions use the percentage values for your calculations (for example 10% not 0.10). Enter your response as a percentage rounded to 2 decimal places.

a. Calculate the expected rate of return.

Expected Rate of Return =  %

b. Calculate the variance of the return.

Variance =  %2

c. Calculate the standard deviation of the return.

Standard Deviation =  %

Math   Statistics-And-Probability   
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