Question: What is the expected return and standard deviation for the following stock? State of Economy Probability of State of Economy Rate of Return if State

What is the expected return and standard deviation for the following stock?

State of

Economy

Probability of

State of Economy

Rate of Return

if State Occurs

Boom

.06

.06

Normal

.74

.07

Recession

.20

.18

A.

8.42 percent; 5.69 percent
B.

8.42 percent; 5.74 percent
C.

8.53 percent; 5.74 percent
D.

8.53 percent; 5.69 percent

Please write out by hand/type not in excel

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