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8. PL Lumber stock information is as follows: STATE OF ECONOMY PROBABILITY RETURN PER STATE BOOM 0.25 22% NORMAL 0.55 12% RECESSION 0.20 -2% (1)

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8. PL Lumber stock information is as follows: STATE OF ECONOMY PROBABILITY RETURN PER STATE BOOM 0.25 22% NORMAL 0.55 12% RECESSION 0.20 -2% (1) What is the expected rate of return on this stock? (3pts) (2) What is the standard deviation on this stock? (5pts) Round up your answer to TWO decimals in %

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