Suppose a financial manager has determined that the firm's expected return is positively related to the state of the economy, that the possible states of the economy and their probabilities and the company return expectations in each economic state are as shown in the table below:

1. Based on the probabilistic data in the table, what is the expected company return?

2. What is the standard deviation of the company return?

\begin{tabular}{|l|c|c|} \hline State of the Economy & Probability & Company Return (\%) \\ \hline Boom & 0.15 & 25 \\ \hline Expansion & 0.30 & 18 \\ \hline Steady & 0.30 & 8 \\ \hline Contraction & 0.20 & 5 \\ \hline Recession & 0.05 & 20 \\ \hline \end{tabular}