Determine expected return on stock

Reference no: EM1363185

Distribution of rates of return on stock is as follows: State of Economy Probability of State Occurring Stock Return %

Depression 0.1 -4.5
Recession 0.2 4.4
Normal 0.5 12.0
Boom 0.2 20.7

a. What is expected return on stock?
b. What is the standard deviation of returns on the stock?

Reference no: EM1363185

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