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Calculate the standard deviations for Roll and Ross by filling in the following table (verify your answer using returns expressed in percentages as well as

Calculate the standard deviations for Roll and Ross by filling in the following table (verify your answer using returns expressed in percentages as well as decimal

Security Returns If State Occurs
State of Probability of
Economy State of Economy Roll Ross
Bust .60 -14 % 15 %
Boom .40 32 5

State of Economy Probability of State of Economy Return Deviation from Expected Return Squared Return Deviation Product
Roll
Bust
Boom
2 =
Ross
Bust
Boom
2 =

Standard deviations
Roll %
Ross %

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