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returns for the coming year (LO2, LO3) State of the Economy Probability Return t High Growth 0.2 +30% Normal Growth 0.7 +12% Recession 0.1

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returns for the coming year (LO2, LO3) State of the Economy Probability Return t High Growth 0.2 +30% Normal Growth 0.7 +12% Recession 0.1 -15% you exped the following stock market 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? b. Compute the standard deviation of the percentage return over the coming year.

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