Question 2 (10 points] A hedge fund has found a stock whose return depends on the state of the economy one year from now. The forecasting department has determined expected returns and probabilities of states to be as follows: (3' Expected return: 11.25%; Volatility 9.6% (:3: Expected return: 6.25%; Volatility .009296 [3| Expected return: 15%; Volatility 13% [3: Expected return: 15%; Volatility 10% C] Expected return: 6.25%; Volatility 9.6%