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4. Use the following table to calculate: State of the Economy Probability Projected Return Recession 10 -15% Moderate 20 0% Average 40 10% Good 20

4. Use the following table to calculate:

State of the

Economy

Probability

Projected Return

Recession

10

-15%

Moderate

20

0%

Average

40

10%

Good

20

15%

Outstanding

10

20%

  1. The Expected rate of return on this investment
  2. The risk (i.e. the standard deviation) of the investment

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