Build a spreadsheet that automatically computes the expected market return and risk for different assumptions about the state of the economy.
a. First, create the following spreadsheet and compute the expected return and standard deviation.

b. Compute the expected return and risk for the following scenarios:

and

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1 State of Economy Probability of State Expected Market Return 2 Fast Growth 3 Slow Growth No Growth Recession Depression 0.13 0.42 0.25 0.18 0.02 35% 17% 3% 15% 30% Sum - 1.00 Expected Return- tandard Deviation- 10 State of Economy Fast Growth Slow Growth No Growth Recession Depression Probability of State 0.13 0.33 0.3 0.2 0.04 Expected Market Return 30% 15% 2% -18% 25% State of Economy Probability of State Expected Market Return 0.15 0.35 0.34 0.15 0.01 40% 18% Fast Growth Slow Growth No Growth Recession Depression 20% 35%