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Security Returns If State Occurs State of Economy Probability of State of Economy Roll Ross Bust .30 12 % 16 % Boom .70 23 6

Security Returns If State Occurs
State of Economy Probability of State of Economy
Roll Ross
Bust .30 12 % 16 %
Boom .70 23 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 .30
Boom .70
2 =
Ross
Bust .30
Boom .70
2 =

Standard Deviations
Roll %
Ross %

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