Question: a) Consider the following information: State Probability Boom Normal Slowdown Recession 0.25 0.50 0.15 0.10 ABC Inc.'s Return 15% 8% 4% -3% i. ii. iii.

a) Consider the following information: State Probability Boom Normal Slowdown Recession

a) Consider the following information: State Probability Boom Normal Slowdown Recession 0.25 0.50 0.15 0.10 ABC Inc.'s Return 15% 8% 4% -3% i. ii. iii. What is the expected return? What is the variance? What is the standard deviation? (1 +1+1=3 marks)

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