# Expected rates of return and standard deviation of the returns

You are considering a security with the following possible rates of return:

Probability Return (%)

0.20 9.6

0.30 12.0

0.30 14.4

0.20 16.8

Calculate the expected rate of return

Calculate the standard deviation of the returns

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#### Solution Summary

The solution calculates the expected rates of return and standard deviation of the returns.

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