Question: PLEASE USE THE EXCEL and show me the formula Bacon and Associates, a famous Northwest think tank, has provided probability estimates for the four potential

PLEASE USE THE EXCEL and show me the formula
PLEASE USE THE EXCEL and show me the formula Bacon and Associates,

Bacon and Associates, a famous Northwest think tank, has provided probability estimates for the four potential economic states for the coming year. The probability of a boom economy is 20%, the probability of a stable growth economy is 45%, the probability of a stagnant economy is 20%, and the probability of a recession is 15%. Estimate the expected return on the following individual investments for the coming year. Forecasted Returns for Each Economy INVESTMENT Boom Stable Growth Stagnant Recession Stock 25% 12% 4% -12% Corporate Bond 9% 7% 5% 3% Government Bond 8% 6% 4% 2% Using the data, calculate the variance and standard deviation of the three investments: stock, corporate bond, and government bond. If the estimates for both the probabilities of the economy and the returns in each state of the economy are correct, which investment would you choose, considering both risk and return? Why

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