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Security Returns if State of Economy Bust Probability of State of Economy State Occurs Roll Ross -19%' .20% Boom 30 7. 0.30 0.70 Calculate
Security Returns if State of Economy Bust Probability of State of Economy State Occurs Roll Ross -19%' .20% Boom 30 7. 0.30 0.70 Calculate the standard deviations for Roll and Ross by filling in the following table: Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4 decimal places. Answer is complete and correct. Return Deviation State of Economy Probability of State of Economy from Expected Return Squared Return Deviation Product Roll Bust 0.30 -0.3430 0.1176 0.0353 Boom 0.70 0.1470 0.0216 0.0151 = 0.0504 Ross Bust 0.30 0.0910 0.0083 0.0025 Boom 0.70 -0.0390 0.0015 0.0011 = 0.0036
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