Question: Using the following information, calculate the expected return and the standard deviation of ABC. State of the Economy Probability ABC Stock Return (%) Depression 0.15

Using the following information, calculate the expected return and the standard deviation of ABC.

State of the Economy Probability ABC Stock Return (%)

Depression 0.15 5

Recession 0.2 1

Normal 0.4 6

Boom 0.25 18

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