Question
A portfolio manager has made an investment that will generate returns that are subject to the state of the economy during the year. Use the
A portfolio manager has made an investment that will generate returns that are subject to the state of the economy during the year. Use the following information to calculate the standard deviation of the return distribution for the portfolio.
| Economic State | Return | Probability |
| Weak | 12% | 0.40 |
| Marginal | 20% | 0.35 |
| Strong | 25% | 0.25 |
WHAT IS THE STANDARD DEVIATION?
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
15th edition
1259404781, 007802563X, 978-1259404788, 9780078025631, 978-0077522940
