Please read all of the questions and problems carefully. Complete all problems using the correct formulas and show all of your work on the problems for full and/or partial credit. Make sure your answers are legible and clearly stated Use the following data to answer the following questions (a, b,cd) Economy Probability Sheldon's Train Emporium (STE) Recession 0.20 4.0% Average 0.50 12.0 Boom 0.30 30.0 Beta 1.10 a. Calculate the expected return for STE? b. Calculate the standard deviation of returns for STE What does the standard deviation measure? c. If the current risk-free rate is 2.50% and the market risk premium is 5.0%, what is STE's. required rate of return? d. Is STE under or over-valued? Hinc Compare your answers to avand Reed - 12 points possible