Please solve part b. by hand and show where the numbers came from using the formula. Do not worry about the rest of the problem (Only do part b please and do it by hand) Thanks.

Problem 05-04 (Algo) Assume that the economy can experience high growth, normal growth, or recession. Under these conditions, you expect the following stock market returns for the coming year: State of the Econom High Growth Normal Growth Recession Probabilit 0.2 0.7 0.1 Return 25% 11% a. Compute the expected value of a $1,000 investment over the coming year. If you invest $1,000 today, how much money do you expect to have next year? What is the percentage expected rate of return? Instructions: Enter dollar values rounded to the nearest whole dollar and percentages rounded to one decimal place The expected value is $ 1126 and the expected rate of return is 12.61%. b. Compute the standard deviation of the percentage return over the coming year. Standard deviation-L 71 % c. If the risk-free return is 7 percent, what is the risk premium for a stock market investment? Risk premium-1 561%