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Compute the standard deviation given these four economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth 0.20 100 % Slow
Compute the standard deviation given these four economic states, their likelihoods, and the potential returns:
Economic State | Probability | Return | ||
Fast Growth | 0.20 | 100 | % | |
Slow Growth | 0.50 | 10 | % | |
Recession | 0.20 | 1 | % | |
Depression | 0.10 | 10 | % |
a)12.19 percent
b)23.8 percent
c)38.65 percent
d)88.06 percent
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