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Security Returns If State Occurs State of Probability of Economy State of Economy Bust .30 Boom .70 Roll -11% 29 Ross 12% 5 Calculate the

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Security Returns If State Occurs State of Probability of Economy State of Economy Bust .30 Boom .70 Roll -11% 29 Ross 12% 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.) Probability of Return Deviation Squared State of State of from Expected Return Economy Economy Return Deviation Product Roll Bust .30 Boom .70 02- Ross Bust Boom 30 .70 02- Standard Deviations % % Roll Ross

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