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States of the economy can affect the return on investment

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Laura is considering investing in a company's stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment.

Probability ReturnBoom0.325.00%Good0.115.00%Level0.310.00%Slump0.3-5.00%

Use the table of returns and probabilities above to determine the expected return on Laura's investment? (Round answer to 3 decimal places, e.g. 0.076.)

Expected return

Use the table of returns and probabilities above to determine the standard deviation of the return on Laura's investment? (Round answer to 5 decimal places, e.g. 0.07680.)

Standard deviation

Reference no: EM132515691

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