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A firm has the following returns in various states of the economy: State of the Economy Probability Return Good 20% 25% Average 60% 15% Bad
A firm has the following returns in various states of the economy:
State of the Economy | Probability | Return |
Good | 20% | 25% |
Average | 60% | 15% |
Bad | 20% | 10% |
What is the standard deviation of returns?
0.8660
4.89%
0.004
1.6331
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