Following are four economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast...

Following are four economic states, their likelihoods, and the potential returns:

Economic State	Probability	Return
Fast growth	0.32	62	%
Slow growth	0.43	18
Recession	0.15	−8
Depression	0.10	−42

Compute the expected return and standard deviation. (Do not round intermediate calculations and round your answers to 2 decimal places.)

Expected return _____%

Standard deviation ______%

Solutions

Expert Solution

The expected return and standard deviation is calculated in excel below

jeff jeffy answered 1 year ago

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