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Question) You have concluded that next year the following relationships are possible: Economic Status Probability Rate of Return Weak Economy 0.25 -5% Static Economy 0.50

Question) You have concluded that next year the following relationships are possible: Economic Status Probability Rate of Return Weak Economy 0.25 -5% Static Economy 0.50 10% Strong Economy 0.25 15%

Compute the standard deviation of the rate of return for the one-year period. a. 15.1% b. 10.6% c. 7.5% d. 5.8%

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