1)naulilus clothings stock has a 50% chance of producing a 15% return, a 20% chance of producing a 21% return, and a 30% chance of producing a -6% return. what is the firms expected return?

2) you've wstimated the following expected returns for a stock, depending on the strength of the economy:

state(s) probability expected return

recession 0.3 -0.05

normal 0.5 0.06

expansion 0.2 0.11

a. what is the expected return for the stock? b. what is the standard deviation of returns for the stock?