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A. What is the variance of the stock investment? _______% (Round to six decimal places.) B. What is the standard deviation of the stock investment?

A. What is the variance of the stock investment? _______% (Round to six decimal places.)

B. What is the standard deviation of the stock investment? ________% (Round to two decimal places.)

C. What is the variance of the corporate bond investment? ________% (Round to six decimal places.)

D. What is the standard deviation of the corporate bond investment? _____%(Round to two decimal places.)

E. What is the variance of the government bond investment? _________% (Round to six decimal places.)

F. What is the standard deviation of the government bond investment? _____ (Round to two decimal places.)

G. If the estimates for both the probabilities of the economy and the returns in each state of the economy are correct, which investment would you choose, considering both risk and return?(Select the best response.)

A. There is not enough information to make this decision.

B. The government bond would be the best choice because it has the lowest risk.

C. The stock investment would be the best choice because it has the highest volatility and therefore the best chance of a high return.

D. The corporate bond would be the best choice because it has the highest expected return and the lowest risk.

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Data table (Click on the followina icon in order to copv its contents into a spreadsheet.)

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