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Security Returns if State Occurs 10 points State of Economy Bust Boom Probability of State of Economy 0.40 0.60 Roll -10% Ross 21% 28 Calculate

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Security Returns if State Occurs 10 points State of Economy Bust Boom Probability of State of Economy 0.40 0.60 Roll -10% Ross 21% 28 Calculate the standard deviations for Roll and Ross by filling in the following table: (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4 decimal places.) eBook Print State of Economy Probability of State of Economy Return Deviation from Expected Return Squared Return Deviation Product References Roll Bust 0.0208 0.40 0.60 (4.0000) 16.8000 0.0519 0.02311 Boom 0.0139 0.0346 Ross Bust 0.40 0.60 Boom (0.0520) 0.0027

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