Barbara is considering investing in a companys stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment. Using the table of returns and probabilities below, find the expected return and the standard deviation of the return on Barbaras investment.

	Probability	Return
Boom	0.1	25.00%
Good	0.4	15.00%
Level	0.3	10.00%
Slump	0.2	-5.00%

Directions: Please make sure to first identify each formula you are asked to calculate, show your work on how you completed the calculation, and then identify the answer to the calculation. Please enter these in the areas identified in red.

EXAMPLE: Calculate the Net Income

Net Income Formula	Revenues Expenses
Net Income Calculation	$5,398,412,000 - $109,524,395
Net Income Answer	$430,316,805

Calculate the expected return

Expected Return Formula	Enter the formula here
Expected Return Calculation	Enter the calculation here
Expected Return Answer	Enter the answer here

Calculate the standard deviation

Standard Deviation Formula	Enter the formula here
Standard Deviation Calculation	Enter the calculation here
Standard Deviation Answer	Enter the answer here