Question: Problem 10-24 Expected Return and Risk (LG10-1) Following are four economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.22

Problem 10-24 Expected Return and Risk (LG10-1) Following are four economic states, their likelihoods, and the potential returns:

Economic State Probability Return

Fast growth 0.22 66 %

Slow growth 0.55 26

Recession 0.18 19

Depression 0.05 53

Compute the expected return and standard deviation.

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