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answer plz investment alternatives, shown with their probabilities and associated outcomes. (For now, disregard the items at the bottom of the data, you will fill
answer plz
investment alternatives, shown with their probabilities and associated outcomes. (For now, disregard the items at the bottom of the data, you will fill in the blanks later.) Estimated Returns on Alternative Investments State of the Rroba Economy bilit T-BillsTech tions Rubber Portfolio Portfolio High CollecUSMarketTwo-Stock Recession Below Average 0.2 8.0-2.014.710.01.0 Average Above Average 0.2 8.0 350 10.0 45.0 29.0 Boom 0.1 80% -22.0% 28.0% 10.0% -130% 0.4 8.0 20.0 0.0 7.015.0 0.1 8.0 50.0 20.0 30.0 43.0 cV a. You should recognize that basing a decision solely on expected retums is appropriate only for risk-neutral individuals. Because the beneficiaries of the trust, like virtually everyone, are nsk averse, the riskiness of each alternative is an important aspect of the decision. One possible measure of risk is the standard deviation of returns (1) Calculate this value for each alternative, and fill in the row for in the table. (2) What type of risk does the standard deviation measure? 0 The bank's ernnomic fo ososStep by Step Solution
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