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Based on the following information, what is the standard deviation of returns? State of Economy Probability of State of Economy Rate of Return if State
Based on the following information, what is the standard deviation of returns?
| State of Economy | Probability of State of Economy | Rate of Return if State Occurs |
|---|---|---|
| Recession | .22 | .112 |
| Normal | .25 | .127 |
| Boom | .53 | .237 |
Multiple Choice
18.95%
27.56%
25.26%
13.76%
19.51%
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Probability For Risk Management
Authors: Matthew J. Hassett, Donald G. Stewart
2nd Edition
156698548X, 978-1566985482
