FIN3000, Chapter 8 Risk and Rates of Return Problem Solving Economy Recession Below avg Average Above avg Boom Prob. 0.1 0.2 0.4 0.2 0.1 T-Bill 3.0% 3.0% 3.0% 3.0% 3.0% HT -29.5% -9.5% 12.5% 27.5% Coll 24.5% -1.0% 10.5% -16.5% -5.0% USR 42.5% -20.0% 3.5% 0.5% 38.5% 23.5% MP -19.5% -5.5% 7.5% 22.5% 35.5% What is the expected return for Collection? What is the standard deviation for Collection?

FIN3000, Chapter 8 Risk and Rates of Return Problem Solving What is the expected return for Collection? What is the standard deviation for Collection