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Question 7 (1 point) Your firms analyst believes that economic conditions during the next year will be either strong, normal, or weak, and she thinks
Question 7 (1 point)
Your firms analyst believes that economic conditions during the next year will be either strong, normal, or weak, and she thinks that Crary Inc.s returns will have the probability distribution shown below. Whats the standard deviation of Crarys returns as estimated by your analyst? (Hint: Use the formula for the standard deviation of a population, not a sample.)
Economic | ||||||||
Conditions | Prob. | Return | ||||||
Strong | 30% | 32.50% | ||||||
Normal | 40% | 10.25% | ||||||
Weak | 30% | 15.75% | ||||||
Question 7 options:
19.65% | |
20.63% | |
18.71% | |
17.77% |
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