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Compute the expected return and standard deviation given these four economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth 0.20
Compute the expected return and standard deviation given these four economic states, their likelihoods, and the potential returns:
Economic State | Probability | Return |
Fast Growth | 0.20 | 60% |
Slow Growth | 0.50 | 13% |
Recession | 0.15 | -15% |
Depression | 0.15 | -45% |
9.5 percent; 18.97 percent | ||
9.5 percent; 29.18 percent | ||
9.5 percent; 21.96 percent | ||
9.5 percent; 32.43 percent |
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