Normal economy expected to occur

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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%.

Reference no: EM131190303

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