On January 1, FinCorp Inc. published the following forecasts for the economy:

State of the Economy Probability Forecasted Quarterly Returns

Poor 20% 3%

Average 50% 5%

Boom 30% 8%

During the year you observed quarterly returns of 2 percent, 5 percent, 3 percent, and 8 percent.

a)Calculate the ex ante expected quarterly return.

b)Calculate the ex ante standard deviation of quarterly returns.

c)Calculate the ex post average quarterly return.

d)Calculate the ex post standard deviation of quarterly returns.