The Probability Distribution for the Rate of Return on an Investment

question 113

Short Answer

The probability distribution for the rate of return on an investment is
$\begin{array}{cc}\text { Rate of Return }\\\text { In Percent) }&\text { Probability }\\9.5 & .1 \\9.8 & .2 \\10.0 & .3 \\10.2 & .3 \\10.6 & .1\end{array}$
a. What is the probability that the rate of return will be at least 10%?
b. What is the expected rate of return?
c. What is the variance of the rate of return?

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