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Following are four economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.37 64 % Slow growth 0.43 15 Recession
Following are four economic states, their likelihoods, and the potential returns:
Economic State | Probability | Return | ||
Fast growth | 0.37 | 64 | % | |
Slow growth | 0.43 | 15 | ||
Recession | 0.17 | 20 | ||
Depression | 0.03 | 53 | ||
Compute the expected return and standard deviation. (Do not round intermediate calculations and round your answers to 2 decimal places.)
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