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You have been given this probability distribution for the holding-period return for Cheese, Inc stock: State of Probability HPR Economy Boom 20 24% Normal Growth

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You have been given this probability distribution for the holding-period return for Cheese, Inc stock: State of Probability HPR Economy Boom 20 24% Normal Growth 45 15% Recession 35 8% (1) Calculate the expected holding-period return, the variance of returns, and the standard deviation of returns. (2) Suppose the risk-free rate is 3.5%, calculate the risk premium and the Sharpe Ratio

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