Based on the following information, calculate the expected return, variance and standard deviation:

State of the Economy	Probability	Rate of Return
Depression	5%	-5.0%
Recession	10%	4.0%
Normal	60%	8.0%
Boom	25%	12.0%

Fill in the values in the spreadsheet and show formulas.

A C E F J Output area 1 Input area: Adj Ret. Dev. Squared Variance| Ret. Dev. 2 Stock A Probability Stock A Prob. 3 State Return Ret. 4 Depression Depression Recession |Normal oom 5 Recession 6 Normal 7 oom E(R)= 8 Standard Deviation 9 10 11 12