Calculate the variance and standard deviation. John is considering investing in a stock and is aware the return on that investment is particularly sensitive to how the economy is performing. His 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 on the return on his investment. Please use the excel formula for standard deviation or the standard deviation function in a calculator.

Economic Condition Probability Return

Boom 10% 25%

Good 40% 15%

Level 30% 10%

Slump 20% - 5%