9 Points You are considenng an investment costing $10,000, for which the future cash flows from owning the security depend on the state of the economy as estimated in this table. In any given year the investment could produce any one of the possible cash flows, depending on the particular state of the economy State of the economy Probability of the states Cash flow from the investment % Return Economic Recession 25% $1,400 14% 35% $1,700 17% Moderate Economic Growth 55% S2000 20% Strong Economic Growth Requirements foloving above to calculate -- Expected cash flow - Expected rate of return The standard deviation of the returns 125 MM