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You are given the following information about the security State of Economy Probability of Economy Rate of Return if state occurs Boom 0.28 0.175 Normal

You are given the following information about the security

State of Economy	Probability of Economy	Rate of Return if state occurs
Boom	0.28	0.175
Normal	0.67	0.128
Recession	0.05	0.026

a. What is the expected return on this security? (5 points)

b. What are the variance and the standard deviation of the returns on this security

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