1. The distribution of rates of return on XYZ stock is as follows

State of Probabilit of state XYZ Stock Economy Occuring Return (%) Depression 0.10 -4.5% Recession 0.20 4.4% Normal 0.50 12.0% Boom 0.20 20.7% a. What is the expected return for the stock? b. What is the standard deviation of returns for the stock?