Suppose financial analysts believe that there are four equally likely states of the economy: depression, recession, normal and boom. The return on the Allos Inc. are expected to follow the economy closely. The return predictions are as follows: State of the Economy Allos Inc. Returns (RA) Depression -20% Recession 10% Normal 30% Boom 50%   Required: Calculate the expected returns Calculate the variance Calculate the standard deviation

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.