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(a) Compute the standard deviation of the expected return given the economic states, their likelihoods, and the potential returns. Probability Return Economic State Fast Growth

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(a) Compute the standard deviation of the expected return given the economic states, their likelihoods, and the potential returns. Probability Return Economic State Fast Growth Slow Growth Recession Depression 0.3 0.5 6 x 25% 6% -5% -17% 2x (8 marks)

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