The figure in the popup window,shows the one-year return distribution for RCS st

Question

The figure in the popup window,shows the one-year return distribution for RCS stock. Calculate: a. The expected return. b. The standard deviation of the return. Note: Make sure to round all intermediate calculations to at least five decimal places a. The expected return The expected return is 7.00 %. (Round to two decimal places.) b. The standard deviation of the return. The standard deviation is 1%. (Round to two decimal places.) i Graph/Chart 35T 30 25 15 10- A:-30% return B:-20% return C: 0% return D: 20% return E: 30% return Print Done Enter your answer in the answer box and then click Check Ans

Explanation / Answer

Average = 7.00%

Standard dev = 22.16%

p(x) return p*x p*(x - mean)^2 0.1 -30% -0.03 0.0136900 0.2 -20% -0.04 0.0145800 0.15 0% 0 0.000735 0.25 20.00% 0.05 0.004225 0.3 30.00% 0.09 0.01587

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