Questions and Problems 1. Expected Returns (LO1, CFA1) Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone: State of Economy Recession Normal Boom Probability of State of Economy .25 .50 .25 Security Return if State Occurs -8% 13 23 2. Standard Deviations (LO1, CFA2) Using the information in Question 1, calculate the standard deviation of returns. 3. Expected Returns and Deviations (LO1, CFA2) Repeat Questions 1 and 2 assuming that all three states are equally likely.