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...

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		0.34		0.08	0.29	0.19
Normal		0.55		0.08	0.17	0.11
Recession		0.11		0.08	−0.24	−0.09

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 at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type.

a. What is the expected return of asset D?