Question: The return on Luccasen Corp. next year depends on how strong the economy is: Economy Probability Return very strong 0.2 25% normal 0.4 8% weak

The return on Luccasen Corp. next year depends on how strong the economy is:

Economy Probability Return

very strong 0.2 25%

normal 0.4 8%

weak 0.3 4%

recession 0.1 -10%

What is the expected return (average) based on this information?

What is the standard deviation of these returns?

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