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Variance and standard deviation ( expected ) . Bacon and Associates, a famous Northwest think tank, has provided probability estimates for the four potential economic

Variance and standard deviation (expected). Bacon and Associates, a famous Northwest think tank, has provided probability estimates for the four potential economic states for the coming year in the following table: . The probability of a boom economy is 23%, the probability of a stable growth economy is 42%, the probability of a stagnant economy is 24%, and the probability of a recession is 11%. 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 you choose, considering both risk and return?
Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type.
What is the variance of the stock investment?
%(Round to five decimal places.)
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
\table[[Investment,Dorgented Me mimis op Dech i5conomy],[Boom,\table[[ovming],[otomint]],Stagnant,Recession],[Stock,25%,12%,2%,-10%
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