In an expanding economy with an expected probability of


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%.

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Finance Basics: In an expanding economy with an expected probability of
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