Question

The correct formula for excel please!!

Following are four economic states, their likelihoods, and the potential returns. Economic State Fast growth Slow growth Recession Depression Probability 0.33 0.42 0.15 0.10 Return 56% 15% -12% -42% Compute the expected return and standard deviation. (Do not round intermediate calculations and round your answers to 2 decimal places.) Expected return Standard Deviation Sheet1 ... + DY

Answer 1

Economic state	Probability	Return	Probability*return	(Return - Expected Return)^2
Fast growth	0.33	0.56	0.1848	0.1385
Slow growth	0.42	0.15	0.063	0.0014
Recession	0.15	-0.12	-0.018	0.0947
Depression	0.1	-0.42	-0.042	0.3694
		SUM	0.1878	0.6041
Expected return	SUM of probability*return
Expected return	0.1878
The expected return is 18.78%.
Variance = (Sum of (Return - Expected Return)^2)/4
Variance = .6041/4
Variance	0.15103084
Standard deviation	(Variance)^.5
Standard deviation	(.15103084)^.5
Standard deviation	0.388626865
The standard deviation is 38.86%.