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Ruth is considering investing in a company's stock and is aware that the return on that investment is particularly sensitive to how the economy is
Ruth is considering investing in a company's stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment. Probability Return Boom 0.1 25.00% Good 0.2 15.00% Level 0.1 10.00% Slump 0.6 -5.00% (a1) Your answer is correct. Use the table of returns and probabilities above to determine the expected return on Ruth's investment? (Round answer to 3 decimal places, e.g. 0.076.) Expected return .035 Attempts: 2 of 2 used (a2) Use the table of returns and probabilities above to determine the standard deviation of the return on Ruth's investment? (Round answer to 5 decimal places, e.g. 0.07680.) Standard deviation Save for Later Attempts: 0 of 2 used Submit
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