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Given her evaluation of current economic conditions, Ima Nutt believes there is a 50 percent probability of recession, a 20 percent change of continued steady
Given her evaluation of current economic conditions, Ima Nutt believes there is a 50 percent probability of recession, a 20 percent change of continued steady growth, and a 30 percent probability of inflationary growth. For each possibility, Ima has developed an interest rate forecast for long-term Treasury bond interest rates accordingly: 6%, 9% and 14%. What is the standard deviation under Ima's interest rate forecast? 3.46% O 2.91% O 0.12% 9.0%
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