Calculate the expected rate of return and standard deviation


Escapists Film Corp. sells home videos. Ina boom economy its rate of return is negative 28%, in a normal economy its rate of return is 8% and in a recession its rate of return is 48%. All three possible states of the economy are equally likely. Calculate the expected rate of return and standard deviation of Escapist?

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Finance Basics: Calculate the expected rate of return and standard deviation
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