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BPJ stock is expected to earn 6.3 percent in a normal economy, 14.8 percent in a booming economy, and lose 4.7 percent in a recession.

BPJ stock is expected to earn 6.3 percent in a normal economy, 14.8 percent in a booming economy, and lose 4.7 percent in a recession. The probability of a recession is 20 percent while the probability of a normal economy is 60 percent and the probability of a booming economy is 20 percent.

What is the expected rate of return on this stock?

What is the standard deviation of returns on this stock?

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