FIN 503 1. Consider the following information: Chapter 13 & Chapter 11 ABC, Inc. (%) State Probability Boom .25 15 Normal .50 8 Slowdown .15 4 Recession .10 -3 What is the expected return? What is the variance? What is the standard deviation? 2. Consider the following information (Slide # 15) State Boom Normal Recession Probability .25 .60 .15 Z 15% 10% 10% 9% 5% 10% What are the expected return and standard deviation for a portfolio with an investment of $6,000 in asset X and $4,000 in asset Z? 3. The risk free rate is 4%, and the required return on the market