Compute the Expected Return and Standard Deviation Given These Four

Multiple Choice

Compute the expected return and standard deviation given these four economic states, their likelihoods, and the potential returns: $$\begin{array} { | l | l | l | } \hline \begin{array} { l } \text { Economic } \\\text { State }\end{array} & \text { Probability } & \text { Return } \\\hline \text { Fast Growth } & 0.20 & 60 \% \\\hline \text { Slow Growth } & 0.50 & 13 \% \\\hline \text { Recession } & 0.15 & - 15 \% \\\hline \text { Depression } & 0.15 & - 45 \% \\\hline\end{array}$$

A) 9.5 percent; 32.43 percent
B) 9.5 percent; 21.96 percent
C) 9.5 percent; 18.97 percent
D) 9.5 percent; 29.18 percent