Chapter 11 QB2.

2. Standard Deviations (LO1, CFA2) Using the information in the previous question, calculate the standard deviation of returns.

1. Expected Returns (LO1, CFA1) Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone:

State Of Economy	Probability of State of Economy	Security Return If State Occurs
Recession	0.25	-8%
Normal	0.50	13
Boom	0.25	23