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security returns if state occurs state of economy probability of state of economy Roll Ross Bust 0.5 -19% 12% Boom 0.5 19% 5% Calculate the

security returns if state occurs
state of economy probability of state of economy Roll Ross
Bust 0.5 -19% 12%
Boom 0.5 19% 5%

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 0.50
Boom 0.50
2 =
Ross
Bust 0.50
Boom 0.50
2 =

Standard deviation
Roll %
Ross %

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