Question: For the same economic state probability distribution in Problem, determine the standard deviation of the expected return. In Problem, Compute the expected return given these

For the same economic state probability distribution in Problem, determine the standard deviation of the expected return.

In Problem, Compute the expected return given these three economic states, their likelihoods, and the potential returns: 

Economic State Probability Return Fast growth 0.3 40% Slow growth 0.4 10%

Economic State Probability Return Fast growth 0.3 40% Slow growth 0.4 10% Recession 0.3 -25%

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