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

Question 1 (1 point)

a.

Calculate the expected return on stock of Gamma Inc.:

State of the economy Probability of the states Percentage returns
Economic recession 15% -5.2%
Steady economic growth 30% 2.7%
Boom Please calculate it 13.3%

Round the answers to two decimal places in percentage form.

b.

Calculate the expected standard deviation on stock:

State of the economy Probability of the states Percentage returns
Economic recession 26% -10%
Steady economic growth 28% 10%
Boom Please calculate it 12%

Round the answers to two decimal places in percentage form.

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