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Use this table for the next 5 questions : Bacon and Associates , a famous Northwest think tank , has provided probability estimates for the

Use this table for the next 5 questions : Bacon and Associates , a famous Northwest think tank , has provided probability estimates for the four potential economic states for the coming year . The probability of a boom economy is 20%, the probability of a stable growth economy is 45%, the probability of a stagnant economy is 20%, and the probability of a recession is 15%. INVESTMENT Forecasted Returns for Each Economy Boom Stable Stagnant Recession Growth Stock 25%12%; -12%; 4\%5\%9%7%3% Corporate Bond Government 8%6%4%2% Bond Estimate the expected return on the stock .Estimate the expected return on the corporate bond .6.526.995.976.4%5.90 Estimate the expected return on the government bond .5.8%.6.0%.5.4%5.6%5.2%Using the table from the previous problem , calculate the variance of the stock 0.0178.0145.01220.0126.0134 Using the table from the previous problem , calculate the standard deviation of the corporate bond .0543.0345.0734.0191.0277

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