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Following are three economic states, their likelihoods, and the potential returns: Economic State Fast growth Slow growth Recession Probability Return 0.3 0.4 0.3 40 %

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Following are three economic states, their likelihoods, and the potential returns: Economic State Fast growth Slow growth Recession Probability Return 0.3 0.4 0.3 40 % 10 -25 Determine the standard deviation of the expected return. Standard deviation

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