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The expected returns for Surf Company are shown below: Economy Probability Return Boom 0.05 25% Above average 0.25 15% Average 0.40 10% Below average 0.25

The expected returns for Surf Company are shown below:

Economy Probability Return

Boom 0.05 25%

Above average 0.25 15%

Average 0.40 10%

Below average 0.25 5%

Recession 0.05 -15%

Calculate expected return and standard deviation for Acme.

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