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Question 1 Calculate the expected return on stock of Gamma Inc.: State of the economy Probability of the states Percentage returns Economic recession 12% -4.0%

Question 1

Calculate the expected return on stock of Gamma Inc.:

State of the economy Probability of the states Percentage returns
Economic recession 12% -4.0%
Steady economic growth 31% 3.7%
Boom Please calculate it 14.4%

Round the answers to two decimal places in percentage form.

Question 2

Calculate the expected standard deviation on stock:

State of the economy Probability of the states Percentage returns
Economic recession 12% -9%
Steady economic growth 36% 7%
Boom Please calculate it 17%

Round the answers to two decimal places in percentage form. (

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