Spreadsheet Problem Build a spreadsheet that automatically computes the expected market return and risk for different assumptions about the state of the economy. a. First, create a spreadsheet like the one shown below and compute the expected return and standard deviation. B 1 2 Probability of State 0.13 0.42 3 State of Economy Fast growth Slow growth No growth Recession Depression Expected Market Return 35% 17% 3% -15% -30% 4 0.25 0.18 5 6 0.02 7 8 Sum= 9 10 1.00 Expected return= Standard deviation = b. Compute the expected return and risk for the following two scenarios: A B 1 2 3 Probability of State 0.13 0.33 Expected Market Return 30% 15% State of Economy Fast growth Slow growth No growth Recession Depression 2% 4 5 6 0.30 0.20 0.04 -18% -25% 1 2 3 B Probability of State 0.15 0.35 Expected Market Return 40% 18 State of Economy Fast growth Slow growth No growth Recession Depression 4 0.34 4 5 0.15 0.01 -20 -35 6