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Following are four economic states, their likelihoods, and the potential returns: Economic State: Probability: Return: Fast Growth 0.30 52% Slow Growth 0.58 11% Recession 0.10
Following are four economic states, their likelihoods, and the potential returns:
Economic State: Probability: Return:
Fast Growth 0.30 52%
Slow Growth 0.58 11%
Recession 0.10 -21
Depression 0.02 -54
Compute the expected return and standard deviation. (Do not round intermediate calculations and round answers to 2 decimal places.
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