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Compute the expected return and standard deviation of returns for the investment

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1. An investment has the following probability of returns.

Expected
Return Probability
-0.20 0.10
-0.05 0.20
0.10 0.40
0.25 0.25
0.40 0.05

a. Compute the expected return for the investment.

b. Compute the standard deviation of returns for the investment.

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Umut Oltulu, MBA
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  • MBA, Texas A&M University-Kingsville
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