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Required section below. Investors have made the following forecast about the returns from investing in securities issued by two companies: State of the Economy Required:

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Required section below. Investors have made the following forecast about the returns from investing in securities issued by two companies: State of the Economy Required: A Boom Good times Average times Bad times Recession B A. Calculate the expected return of each distribution. B. Calculate the standard deviation of each distribution C. In terms of total risk, which security is safer? Probability Your answers to this open-ended assignment should be placed in the space below this line. Probability Probability Probability of this Rate of return Rate of return state of the from from economy Company X Company Z Company X Expected return 5% 20% 50% 15% 10% Company Z Expected return Return Return 19% 17% 15% 6% 15 Company X Return Product Calculations of Standard Deviation Product 51% 31% 20% -6% -2716 Deviation Deviation Squared Variance Product B Probability Probability Probability Expected return Company Z Expected return Return Calculations of Standard Deviation Company X Return Company Z Product Return Deviation Deviation Squared Variance Standard deviation Deviation Deviation Squared Variance Standard deviation Product Product

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