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A company has the following Expected Outcomes of Returns under varying performance scenarios of the Economy: Economy Probability Outcome Return Recession 20% -5% Normal 50%

A company has the following Expected Outcomes of Returns under varying performance
scenarios of the Economy:
Economy Probability Outcome Return
Recession 20% -5%
Normal 50% 12%
Boom 30% 19%
The expected return and standard deviation are:
a Expected Return 10.7%, Standard Deviation of return 8.4%
b Expected Return 8.4%, Standard Deviation of return 10.7%
c Expected Return 10.7%, Standard Deviation of return 0.07%
d Expected Return 8.4%, Standard Deviation of return 0.07%
e Expected Return 8.7%, Standard Deviation of return 8.4%
f none of the above

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