EXPECTED RETURN: A stocks returns have the following distribution: What is the stock's expected return and what is the standard deviation?

Economy Probability of This Economy Occurring Rate of Return if This Economy Occurs

Weak 0.1 -30%

Below average 0.1 -14%

Average 0.3 11%

Above average 0.3 20%

Strong 0.2 45%

1.0

The stocks expected return is

		a. 13.50%
		b. 13.70%
		c. 13.80%
		d. 13.90%
		e. 13.97%

The standard deviation?

		a. 17.54%
		b. 21.86%
		c. 23.71%
		d. 26.93%
		e. 28.19%