Given the following probability distribution, what are the expected return and the standard deviation of...

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Finance

Given the following probability distribution, what are the expected return and the standard deviation of returns for Security J?

State Pi ri

1 0.5 10%

2 0.4 9%

3 0.1 27%

10.80%; 5.55%

10.30%; 4.95%

12.30%; 4.65%

11.30%; 5.25%

11.80%; 5.85%

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