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Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust 0.60 14 % 15 % Boom 0.40 32 5

Security Returns if State Occurs
State of Economy Probability of State of Economy Roll Ross
Bust 0.60 14 % 15 %
Boom 0.40 32 5

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.)

State of Economy Probability of State of Economy Return Deviation from Expected Return Squared Return Deviation Product
Roll
Bust 0.60
Boom 0.40
2 =
Ross
Bust 0.60
Boom 0.40 -0.0600 0.0036
2 =

(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

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