Expected return and standard

deviation.

Use the following information to answer the questions:

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State of Economy Probability of State Return on Asset D in State Return on Asset E in State Return on Asset F in State Boom 0.33 0.09 0.29 0.17 Normal 0.48 0.09 0.18 0.11 Recession 0.19 0.09 -0.25 -0.04

a.What is the expected return of each asset?

b.What is the variance of each asset?

c.What is the standard deviation of each asset?

Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type.

Question content area bottom

Part 1

a.What is the expected return of asset D?

enter your response here

(Round to four decimal places.)

Part 2

What is the expected return of asset E?

enter your response here

(Round to four decimal places.)

Part 3

What is the expected return of asset F?

enter your response here

(Round to four decimal places.)

Part 4

b.What is the variance of asset D?

enter your response here

(Round to four decimal places.)

Part 5

What is the variance of asset E?

enter your response here

(Round to four decimal places.)

Part 6

What is the variance of asset F?

enter your response here

(Round to four decimal places.)

Part 7

c.What is the standard deviation of asset D?

enter your response here

(Round to four decimal places.)

Part 8

What is the standard deviation of asset E?

enter your response here

(Round to four decimal places.)

Part 9

What is the standard deviation of asset F?

enter your response here

(Round to four decimal places.)