GenLabs Has Been a Hot Stock the Last Few Years

question 3

Multiple Choice

GenLabs has been a hot stock the last few years, but is risky. The expected returns for GenLabs are highly dependent on the state of the economy as follows:
$\begin{array} { l l l } \underline{\text { State of Economy }} & \underline{\text { Probability }} & \underline{ \text { GenLabs Returns } }\\ \text { Depression } & . \mathbf { 0 5 } & \mathbf { - 5 0 \% } \\\text { Recession } & .10 & \mathbf { - 1 5 \% } \\\text { Mild Slowdown } & .20 & \mathbf { 5 \% } \\\text { Normal } & .30 & \mathbf { 1 5 \% } \\\text { Broad Expansion } & .20 & \mathbf { 2 5 } \% \\\text { Strong Expansion } & .15 & \mathbf { 4 0 \% }\end{array}$
-The standard deviation of GenLabs returns is

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Definitions:

Tetanus

A serious bacterial infection affecting the nervous system, leading to painful muscle contractions, commonly known as lockjaw.

Syphilis

A sexually transmitted infection caused by the bacterium Treponema pallidum, presenting in various stages from sores to serious systemic symptoms.

Lyme Disease

An infectious disease caused by the Borrelia bacteria, transmitted to humans through the bite of infected black-legged ticks.

Spirilla

A genus of spiral-shaped bacteria, some of which are known to cause diseases in humans.