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[15] QUESTION FOUR The following information relates to Netherton's investment performance, during various economic conditions. Economic conditions Probability Expected return Boom 0.20 +40% Normal 0.60

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[15] QUESTION FOUR The following information relates to Netherton's investment performance, during various economic conditions. Economic conditions Probability Expected return Boom 0.20 +40% Normal 0.60 +15% Recession 0.20 -10% Required: (8) 4.1 Calculate the expected return of this investment (7) 4.2 Estimate the overall risk (standard deviation) of this investment

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