1. The return on shares of Fast Transportation Company (FTC) is predicted under the following various economic conditions: Recession -0.05 Normal +0.08 Boom +0.17 Analysts estimate the probability of recession at .40, the probability of normal conditions at 0.25, and the probability of an economic boom at 0.35. What is the expected return of the stock? Work your analysis out using at least four decimal places of accuracy, and place your answer in decimal form with four decimal points. That is, an answer of fifteen and two-thirds pwould be inputted as .1567.

2. The returns on shares of Valley Transporter are predicted under the following various economic conditions: Recession -0.13 Normal +0.09 Boom +0.22 If each economy state has the same probability of occurring (33.33%), what is the variance of the stock? Place your answer in decimal form using four decimal places.

3. The return on shares of the Orange Company are predicted under the following states of nature. The states of nature are all equally likely, and because there are a total of three states, each state has a 33.333% chance of occurring. Recession -0.12 Normal +0.07 Boom +0.24 What is the standard deviation of Orange? * Place your answer in decimal form, for example as say .0675 and not 6.75.