A B E F G H Note: Please put your answers only in the section below the Bold Red sentence at the end of the Required section below. 4 5 7 00 OEN Investors have made the following forecast about the returns from investing in securities issued by two companies: 6 Probability of Rate of State of the Rate of this state of the return from return from Economy economy Company Company Z Boom 5% 19% 51% Good times 20% 17% 31% 10 Average times 50% 15% 20% 11 Bad times 15% 6% -6% 12 Recession 10% 1% -27% 13 14 Required: 15 A. Calculate the expected return of each distribution. 16 B. Calculate the standard deviation of each distribution. 17 C. In terms of total risk, which security is safer? 18 19 Your answers to this open-ended assignment should be placed in the space below 68 69 70 71 72 73 74 75 c