Problem
Consider the following probabilistic distribution for three states of economy for respective share:
|
State of the Economy
|
Probability
|
Share A
|
Share B
|
Share C
|
|
Recession
|
0.25
|
-0.2
|
-0.10
|
-0.06
|
|
Normal growth
|
0.55
|
0.19
|
0.13
|
0.15
|
|
Boom
|
0.20
|
0.40
|
0.28
|
0.23
|
Task
Calculate the expected return, variance, and standard deviation for Share C.