Question: Problem 10-15 Expected Return and Risk (LG10-1) Following are four economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.23

Problem 10-15 Expected Return and Risk (LG10-1)

Following are four economic states, their likelihoods, and the potential returns:

Economic State Probability Return
Fast growth 0.23 66%
Slow growth 0.42 12
Recession 0.21 15
Depression 0.14 45

Compute the expected return and standard deviation.

Note: Do not round intermediate calculations and round your answers to 2 decimal places.

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