Question: Question 1 (1 point) 1. Calculate the expected return on stock of Gamma Inc.: State of the economy Probability of the states Percentage returns Economic

Question 1 (1 point)

1. Calculate the expected return on stock of Gamma Inc.:

State of the economy Probability of the states Percentage returns
Economic recession 12% -3.0%
Steady economic growth 48% 2.8%
Boom Please calculate it 12.0%

Question 2 (1 point)

Calculate the expected standard deviation on stock:

State of the economy Probability of the states Percentage returns
Economic recession 17% -3%
Steady economic growth 26% 8%
Boom Please calculate it 11%

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