Question: 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
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 for all calculations

. D | Output area: G H I J K 1 Input area: Adj. Ret. Ret. Dev. Ret. Dev. Squared Variance Prob. Stock A Probability Return 3 State 4 Depression 5 Recession 6 Normal 7 Boom Stock A Depression Recession Normal Boom E(R) = Standard Deviation 000 OE
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