The formula for the growth model is: g$=[$r$($A$/$E$)-$i$($D$/$E$)](1-$t$)(1-$c$).$

Let t$=0\mathrm{.}2$ and c$=0\mathrm{.}5,$ the average r$=0\mathrm{.}10$ with std$.$ deviation $0\mathrm{.}05$ and the average i$=0\mathrm{.}05$ with std$.$ deviation $0\mathrm{.}025.$ What is the expected growth rate, g$,$ and standard deviation of g if D$/$E$=1?($assume no correlation between r and i$).$

NOTE. I won't ask it here, but on an examination after you solve for the above, I might ask you what happens to g and the std deviation if$,$ say, D$/$E increases to $3$ and ask you to explain why it happened.

The growth rate is

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and the standard deviation is

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