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the answer must have be rounded to 6 decimal places Variance and standard deviation (expected). Hull Consultants, a famous think tank in the Midwest, has
the answer must have be rounded to 6 decimal places
Variance and standard deviation (expected). Hull Consultants, a famous think tank in the Midwest, has provided probability estimates for the four potential economic states for the coming year in the following table: B. The probability of a boom economy is 13%, the probability of a stable growth economy is 18%, the probability of a stagnant economy is 54%, and the probability of a recession is 15%. Calculate the variance and the standard deviation of the three investments: stock, corporate bond, and government bond. If the estimates for both the probabilities of the economy and the returns in each state of the economy are correct, which investment would vou choose, considering both risk and return? What is the variance of the stock investment? 3.72 (Round to six decimal places.) Investment Stock Corporate bond Government bond Recession - 13% Forecasted Returns for Each Economy Stable Growth Stagnant 11% 2% 7% 6% 6% 5% B om 30% 10% 9% 3% 2% Step by Step Solution
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