Question: A production manager is looking at the return on three assets: State of Economy Boom Growth Stagnant Recession Probability of Return on Asset A

A production manager is looking at the return on three assets: State

A production manager is looking at the return on three assets: State of Economy Boom Growth Stagnant Recession Probability of Return on Asset A Return on Asset B Return on Asset C State 0.25 0.040 0.280 0.450 0.15 0.040 0.140 0.275 0.30 0.040 0.070 0.025 0.30 0.040 -0.035 -0.175 a. What is the expected return of each asset? 20 points b. What are the variances and standard deviations of each asset? 70 points c. Which one would you choose and why. Please explain in detail for full points. 10 points.

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