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Expected Return and Variances Consider the following information: table [ [ State , Probability,ABC, Inc. Return ] , [ Boom , . 2 5

Expected Return and Variances
Consider the following information:
\table[[State,Probability,ABC, Inc. Return],[Boom,.25,0.15],[Normal,.50,0.08],[Slowdown,.15,0.04],[Recession,.10,-0.03]]
What is the expected return? E(R)=inpiRi
What is the variance? 2=i=1npi(Ri-E(R))2
What is the standard deviation? =22
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