Question: For the following economic state probability distribution, determine the expected return and the standard deviation of the expected return. 1 2 234567 A Fast growth

For the following economic state probability distribution, determine the expected return and the standard deviation of the expected return.

1 2 234567 A Fast growth Slow growth No growth Recession Depression

1 2 234567 A Fast growth Slow growth No growth Recession Depression B Probability 0.08 0.40 0.34 0.16 0.02 C Return 38% 14% 6% -16% -30% D E F G H

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