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%
Input area: Output area:
Adj. Ret. Dev.
State Prob. Stock A Stock A Probability Return Ret. Ret. Dev. Squared Variance
Depression Depression
Recession Recession
Normal Normal
Boom Boom
E(R) =
Standard Deviation

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