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Problem 2 Use the following probabilities and returns to calculate the Expected Return, Variance and Standard Deviation Probability Return Boom 0.1 40.00% Good 0.2 30.00%
Problem 2
Use the following probabilities and returns to calculate the Expected Return, Variance and Standard Deviation
| Probability | Return | |
| Boom | 0.1 | 40.00% |
| Good | 0.2 | 30.00% |
| OK | 0.3 | 15.00% |
| Level | 0.2 | 2.00% |
| Slump | 0.2 | -12.00% |
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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
