Question: QUESTION 4 Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth 0.2 Slow

QUESTION 4 Compute the expected return given these three economic states,

QUESTION 4 Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth 0.2 Slow Growth Recession 12.5 percent 3.5 percent 7.5 percent 7.0 percent QUESTION 5 Compute the standard deviation of the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth Slow Growth Recession 21.5 percent 16.5 percent 46.4 percent 6.8 percent

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