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1 . ) Please consider the following table: State of Economy Probability of State Return Boom 3 0 % 1 5 % Good 3 0

1.)Please consider the following table:
State of Economy Probability of State Return
Boom 30%15%
Good 30%10%
Poor 20%5%
Bust 20%-5%
If DEF Corp.s expected performances based on various scenarios are as above, then whats DEF Corp.s expected return?
7.50%
8.12%
6.53%
9.00%
2.)Same facts as above: whats the volatility of DEF Corp.s return as measured by Standard Deviation?
7.50%
0.51%
7.16%
6.48%

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