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Security Returns If State Occurs State of Probability of Economy State of Economy Roll Ross Bust .30 -10 % 14 % Boom .70 21 5

Security Returns If State Occurs
State of Probability of
Economy State of Economy Roll Ross
Bust .30 -10 % 14 %
Boom .70 21 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 amounts should be indicated by a minus sign. Round your Economy and Standard deviation answers to 2 decimal 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
Boom
2 =
Ross
Bust
Boom
2 =

Standard deviations
Roll %
Ross %

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