Question: What is the (a) expected return and (b) standard deviation of the returns on a stock given the following information? (5 points) State of Probability

  1. What is the (a) expected return and (b) standard deviation of the returns on a stock given the following information? (5 points)

State of Probability of Rate of Return

Economy State of Economy if State Occurs

Boom 20% 20%

Normal 60% 15%

Recession 20% -5%

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