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Given the following information, calculate the expected return and standard deviation of the investment. State of the economy Probability Expected rate of return Good 30%

Given the following information, calculate the expected return and standard deviation of the investment.

State of the economy

Probability

Expected rate of return

Good

30% = 0.3

20%

Average

45% =0.45

10%

Bad

25% = 0.25

-5%

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