What is the standard deviation and expected return

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Reference no: EM132024314

Consider the following information:

                State                     Probability               ABC, Inc. Return XYZ, Inc. Return

                Boom                    .25                                         0.18                     0.27

                Normal                 .50                                          0.10                     0.18

                Slowdown           .10                                          0.08                      0.06

                Recession            .15                                         -0.02                      -0.12

For both ABC and XYZ, answer the following. Upload the Excel file.

a) What is the expected return?

b) What is the variance?

c) What is the standard deviation?

Reference no: EM132024314

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