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Expected return and standard deviation. Use the following information to answer the questions. ??State of ??Economy Probability of State Return on Asset D...

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Question

Finance

Expected return and standard

deviation.

Use the following information to answer the questions.

??State of

??Economy

Probability

of State

Return on

Asset D in

State

Return on

Asset E in

State

Return on

Asset F in

State

??Boom

0.38

0.08

0.31

0.19

??Normal

0.48

0.08

0.17

0.13

??Recession

0.14

0.08

?0.22

- 0.04

a.??What is the expected return of each? asset?

b.??What is the variance of each? asset?

c.??What is the standard deviation of each? asset?

?Hint: Make sure to round all intermediate calculations to atleast seven? (7) decimal places. The input? instructions, phrasesin parenthesis after each answer? box, only apply for the answersyou will type.

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Transcribed Image Text

Expected return and standarddeviation.Use the following information to answer the questions.??State of??EconomyProbabilityof StateReturn onAsset D inStateReturn onAsset E inStateReturn onAsset F inState??Boom0.380.080.310.19??Normal0.480.080.170.13??Recession0.140.08?0.22- 0.04a.??What is the expected return of each? asset?b.??What is the variance of each? asset?c.??What is the standard deviation of each? asset??Hint: Make sure to round all intermediate calculations to atleast seven? (7) decimal places. The input? instructions, phrasesin parenthesis after each answer? box, only apply for the answersyou will type.

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