D 00 B I 7 8 B E F G Probability of State of the Rate of Rate of this state of the return from return from Economy economy Company X Company Z Boom 5% 19% 51% 9 Good times 20% 17% 31% 10 Average times 50% 15% 20% 11 Bad times 15% 6% -6% 12 Recession 10% 1% -27% 13 14 Required: 15 A. Calculate the expected return of each distribution. 16 B. Calculate the standard deviation of each distribution. 17 C. In terms of total risk, which security is safer? 18 19 Your answers to this open-ended assignment should be placed in the space below 20 21 A Company X 22 Probability Return Product 23 24 25 26 27 28 Expected return 29 30 31 Company z Return 32 Probability Product 33 34 35 36 37 38 Expected return 39 40