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Security Returns if State Occurs Probability of State of Economy State of Roll Economy Ross 21 8 0.40 Bust -108 0.60 8 28 oom Calculate

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Security Returns if State Occurs Probability of State of Economy State of Roll Economy Ross 21 8 0.40 Bust -108 0.60 8 28 oom 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.) Return Probability of State of Squared Return State of Deviation from Product Economy Expected Return Economy Deviation Roll 0.40 Bust oom 0.60 o2 = Ross Bust 0.40 oom 0.60 (0.0520) 0.0027

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