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What is the expected return and standard deviation on the stock for the period that has the following probable scenarios and returns in each state

  1. What is the expected return and standard deviation on the stock for the period that has the following probable scenarios and returns in each state of economy given below?

State of economy

Probability

Expected return in each state

Strong

0.20

18%

Normal

0.50

9%

Poor

0.30

-5%

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