Question

The following is known about states of the future economy: State Probability Return Very Poor 10.00%...

The following is known about states of the future economy:

State

Probability

Return

Very Poor

10.00%

-11.00%

Poor

25.00%

-5.00%

Medium

35.00%

4.00%

Good

30.00%

9.00%

Question 4: What is your expected return?

Question 5: What is the Standard Deviation of the returns?

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