A stocks expected return has the following distribution:

Outcome	Probability	Return
Recession	25%	-30%
Expansion	40%	15%
Boom	35%	55%

1. What is the stocks expected return?

2. What is the standard deviation of expected return?

3. Interpret your result. How do you explain the relationship between the expected return and the standard deviation of expected return of this investment? [(Assume a normal probability distribution and the return is within + one standard deviation of the expected return)]

Use 2-decimal places in your calculation. Where applicable, draw the timeline showing the known and unknown variables, and show your workings.