Question: Given the following possible expected returns over the three different states of the economy, the data for a share of Hilton Hotels Group's common stock

Given the following possible expected returns over the three different states of the economy, the data for a share of Hilton Hotels Group's common stock is demonstrated below:

State of the Economy Probability (p_each state) Anticipated Rate of Return (r)

Recession 10.00% -1.00%

Normal Year 30.00% 8.00%

Boom 60.00% 18.00%

Based on the data table, calculate the expected return and standard deviation for a share of Hilton Hotels Group's common stock respectively.

A. 13.10% expected return and 8.25% standard deviation

B. 13.20% expected return and 7.40% standard deviation

C. 13.20% expected return and 42.00% standard deviation

D. 13.10% expected return and 6.48% standard deviation

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