Question
Security Returns If State Occurs State of Economy Probability of State of Economy Roll Ross Bust .20 18 % 21 % Boom .80 18 6
Security Returns If State Occurs State of Economy Probability of State of Economy Roll Ross Bust .20 18 % 21 % Boom .80 18 6 Calculate the standard deviations for Roll and Ross by filling in the following table (verify your answer using returns expressed in percentages as well as decimals): (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your Standard deviation answers to 2 decimal places and other answers to 4 decimal places. Omit the "%" sign in your response.) State of Economy Probability of State of Economy Return Deviation from Expected Return Squared Return Deviation Product Roll Bust .20 Boom .80 2 = Ross Bust .20 Boom .80 2 = Standard Deviations Roll % Ross %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started