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Following are three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.28 26 % Slow growth 0.38 14 Recession
| Following are three economic states, their likelihoods, and the potential returns: |
| Economic State | Probability | Return | |||
| Fast growth | 0.28 | 26 | % | ||
| Slow growth | 0.38 | 14 | |||
| Recession | 0.34 | 36 |
| Determine the standard deviation of the expected return. (Round your answer to 2 decimal places.) |
| Standard deviation | % |
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Derivatives Markets
Authors: Robert L. McDonald
2nd Edition
032128030X, 978-0321280305
