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Compute the expected return and standard deviation given these four economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth 0.20

Compute the expected return and standard deviation given these four economic states, their likelihoods, and the potential returns:

Economic State Probability Return
Fast Growth 0.20 60%
Slow Growth 0.50 13%
Recession 0.15 -15%
Depression 0.15 -45%

9.5 percent; 18.97 percent

9.5 percent; 29.18 percent

9.5 percent; 21.96 percent

9.5 percent; 32.43 percent

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