State of the economy Boom Good times Average times Bad times Recession Probability of this state of the economy 5% = .05 20 .20 50 .50 15 .15 10 .10 100% =T1.00 State of the economy Boom Good times Average times Bad times Recession Rate of Return from Company C Company D 25% 50% 20 30 15 20 5 -5 0 -25 a. Graph each probability distribution. b. Calculate the expected return of each distribution. c. Calculate the standard deviation of each distribu- tion. d. In terms of total risk, which security is riskier? How do you conclude this