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You've estimated the following expected returns for a stock, depending on the strength of the economy: State(s) Probability Expected Return Recession 0.2 -0.06 Normal 0.5

You've estimated the following expected returns for a stock, depending on the strength of the economy:

State(s) Probability Expected Return
Recession 0.2 -0.06
Normal 0.5 0.05
Expansion 0.3 0.1

What is the expected return for the stock?

What is the standard deviation of returns for the stock?

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