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1. [13] You plan to invest $1,000 in a corporate bond fund. The following table presents the annual return (per $1,000) of each of
1. [13] You plan to invest $1,000 in a corporate bond fund. The following table presents the annual return (per $1,000) of each of these investments under various economic conditions and the probability that cach of those economic conditions will occur. Corporate Bond Fund Economic Condition Probability Extreme recession -300 0.01 Recession -70 0.09 Stagnation 30 0.15 Slow growth 60 0.35 Moderate growth 100 0.3 High growth 120 0.1 a. What is the expected return for the corporate bond fund? (2) Write the formula from the formula page needed: {4}Use Excel to calculate the expected return b. What is the standard deviation of for the corporate bond fund? {2} Write the formula from the formula page needed: {5}Use Excel to calculate standard deviation
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