Compute the expected return and variance

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Reference no: EM1351295

Given the data below, calculate the expected return, variance, and standard deviation of the following company.

In a recessionary economy, which is expected to occur with a 30% probability, the expected returns would be -5%

In an expanding economy, with an expected probability of occurrence of 20% the expected return would be 10%

In a normal economy, expected to occur 50% of the time, the expected return would be 5%.

Reference no: EM1351295

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