28. after some study of the economy, your forecast for next year is that a boom economy has a 30% chance of occurring, a neutral economy 50%, and a bust economy a 20% chance of occurring. You also estimate that a certain stock would have a return of 32% in a boom economy next year, 17% in a neutral economy , and -13% in a bust economy. The risk-free rate is 4.7%. What is the standard deviation of expected returns for this stock next year? (Answer to the nearest tenth of a percent, but do not use a percent sign).

	Probability	Return
Boom Economy	30%	32%
Neutral Economy	50%	17%
Bust Economy	20%	-13%

Risk-Free Rate = 4.7%

27. After studying the economy, you forecast that there is a 70% chance of a good economy next year and a 30% chance of a poor economy. If the economy is good, you estimate that a stock you have been following would have a 12% return. Likewise, if the economy is poor, you estimate a -16% return for that same stock. The risk-free rate is 4.5%. What is the standard deviation of the expected returns for this stock? (Answer to the nearest tenth of a percent, but do not use a percent sign).

	Probability	Return
Good Economy	70%	12%
Poor Economy	30%	-16%

Risk-Free Rate = 4.5