Question: Ql: Compute the standard deviation of the expected return given these three economic states, their likelihoods, and the potential returns: (5 points) Economic State Fast

Ql: Compute the standard deviation of the expected return given these three economic states, their likelihoods, and the potential returns: (5 points) Economic State Fast Growth Slow Growth Recession Probability Return 0.3 40% 0.4 15% 0.3 15% Q2: A company has a beta of 3.25. If the market return is expected to be 14 percent and the risk-free rate is 5.5 percent, what is the company's required return? (3 points)

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