Solution-What is the variance of the expected returns

What is the variance of the expected returns

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Reference no: EM133064247

Question - A game of chance offers the following odds and payoffs. Each play of the game costs $200, so the net profit per play is the payoff less $200.

Probability	Payoff	Net Profit
0.20	$700	$500
0.40	300	100
0.40	0	-200

a-1. What is the expected cash payoff?

a-2. What is the expected rate of return?

b-1. What is the variance of the expected returns?

b-2. What is the standard deviation of the expected returns?

Reference no: EM133064247

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What is the variance of the expected returns

Reference no: EM133064247

Reference no: EM133064247

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