Question: Based on the following information, calculate the expected return and standard deviation: State of Probability of Rate of Return Economy State of Economy if State

Based on the following information, calculate the expected return and standard deviation:

State of Probability of Rate of Return

Economy State of Economy if State Occurs

Depression...........................0.15..............................2.105

Recession.............................0.30..............................0.059

Normal.................................0.45..............................0.130

Boom...................................0.10..............................0.211

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