Question 3 Assume you are given the following information regarding the expected returns for an asset, for different states of the economy. Show work for all parts requiring computation. state....

Question 3

Assume you are given the following information regarding the expected returns for an asset, for different states of the economy.
Show work for all parts requiring computation.

state.          probability       expected return

Recession             0.1                 -0.04

normal                    0.5                    0.07

expansion          0.4                    0.12

1. What is the expected return for the asset?

1. What is the standard deviation of returns for the asset?