QUESTION 3

16 points

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FIN300 Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will have the probability distribution shown below. What's the standard deviation of the estimated returns? (Hint: Use

the formula for the standard deviation of a population, not a sample.) Do not round your intermediate calculations.

Economic

Conditions

Prob.

Return

Strong

30%

30.0%

Normal

40%

10.0%

Weak

30%

-20.0%

10 points A QUESTION 3 FIN300 incy manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the fe's retums will have the probability distribution shown below What's the standard deviation of the eaedem? the form for the standerd deviation of a population, not a sample) Do not round your intermediate calculations t ne Prob Conditors Song 30% 300% Normal 40% 10.0% Wea 30% -20.0% for the toober, presALT-P10 PQ ALT+F+F10 Ma