Question
7. Following are three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.20 30% Slow growth 0.62 8 Recession
7.Following are three economic states, their likelihoods, and the potential returns:
Economic State Probability Return
Fast growth 0.20 30%
Slow growth 0.62 8
Recession 0.18 -44
Determine the standard deviation of the expected return. (Round your answer to 2 decimal places.)
Standard deviation____%
%
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Finance Applications and Theory
Authors: Marcia Cornett, Troy Adair
3rd edition
1259252221, 007786168X, 9781259252228, 978-0077861681
