Spreadsheet Problem Build a spreadsheet that automatically computes the expected market return and risk for different assumptions about the state of the economy.

(LG10-1)

a. First, create a spreadsheet like the one shown below and compute the expected return and standard deviation.

b. Compute the expected return and risk for the following two scenarios:

B C State of Economy Probability of State Expected Market Return 2 Fast Growth 0.13 35% 3 Slow Growth 0.42 17% 4 No Growth 0.25 3% 5 Recession 0.18 -15% 6 Depression 0.02 -30% 7 8 Sum 1.00