Problem 10-17 Expected Return Risk (LG10-1)

Following are three economic states, their likelihoods, and the potential returns:

Economic State		Probability		Return
Fast growth		0.27		34	%
Slow growth		0.35		7
Recession		0.38		29

Determine the standard deviation of the expected return. (Do not round intermediate calculations and round your answer to 2 decimal places.)

Standard deviation

%