3) Stock A has the following returns for various states of the economy:

State of

the Economy Probability Stock A's Return

Recession 10% -30%

Below Average 20% -2%

Average 40% 10%

Above Average 20% 18%

Boom 10% 40%

a) Stock A's Expected return is:

b) Stock A's standard deviation of returns is

Please add calculations and formulas