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Security Returns If State Occurs State of Probability of Economy State of Economy Bust .50 Boom Roll -13% 31 Ross 14% 7 .50 Calculate the
Security Returns If State Occurs State of Probability of Economy State of Economy Bust .50 Boom Roll -13% 31 Ross 14% 7 .50 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.) Probability of Return Deviation Squared State of State of from Expected Return Economy Economy Return Deviation Product Roll Bust .50 Boom .50 Ross Bust Boom .50 .50 = Standard Deviations % % Roll Ross
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