Problem 10-18 Expected Return Risk (LG10-1)

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

Economic State		Probability		Return
Fast growth		0.32		38	%
Slow growth		0.34		11
Recession		0.34		31

Determine the standard deviation of the expected return. (Round your answer to 2 decimal places.)

Standard deviation

%