Compute the Expected Return and Standard Deviation Given These Four

Compute the expected return and standard deviation given these four economic states, their likelihoods, and the potential returns: Economic State
Probability
Return
Fast Growth
0) 20
60%
Slow Growth
0) 50
13%
Recession
0) 15
-15%
Depression
0) 15
-45%

A) 9.5 percent; 32.43 percent
B) 9.5 percent; 21.96 percent
C) 9.5 percent; 18.97 percent
D) 9.5 percent; 29.18 percent

Correct Answer:

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