An analyst has developed the following probability distribution for the rate of return for a common stock. Scenario Probability Rate of Return (in %) 1 .30 -5 2 .45 0 3 .25 10 a. Calculate the expected rate of return b. Calculate the variance and standard deviation of this probability. I am needing help with what the formula is. I read the entire chapter and am not understanding. I am sure it will be obvious when I get the answer.
An analyst has developed the following probability distribution for the rate of return for a common stock. Scenario Probability Rate of Return (in %) 1 .30 -5 2 .45 0 3 .25 10 a. Calculate the expected rate of return b. Calculate the variance and standard deviation of this probability. I am needing help with what the formula is. I read the entire chapter and am not understanding. I am sure it will be obvious when I get the answer.
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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An analyst has developed the following probability distribution for the rate of return for a common stock.
Scenario | Probability | Rate of Return (in %) |
1 | .30 | -5 |
2 | .45 | 0 |
3 | .25 | 10 |
a. Calculate the expected rate of return
b. Calculate the variance and standard deviation of this probability.
I am needing help with what the formula is. I read the entire chapter and am not understanding. I am sure it will be obvious when I get the answer.
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