Variance and standard deviation (expected). Hull Consultants, a famous think tank I the Midwest, 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 13%, the probability of a stable growth economy is 16%, the probability of a stagnant economy is 47%, and the probability of a recession is 24%. 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 six decimal places.)

Variance and standard deviation (expected). Hull Consultants, a famous th the Midwest, 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 13%, the probability of a stable growth economy is 16%, the probability of a stagnant economy is 47%, and the probability of a recession is 24%. 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 six decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Expected return. 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: probability of a boom economy is 21%, the probability of a stable growth economy is 43%, the probability of a stagnant economy is 22%, and the probability of a recession is 14%. Estimate the expected returns on the following individual investments for the coming year. What is the expected return of the stock investment? \% (Round to two decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) Variance and standard deviation (expected). Hull Consultants, a famous th the Midwest, 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 13%, the probability of a stable growth economy is 16%, the probability of a stagnant economy is 47%, and the probability of a recession is 24%. 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 six decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Expected return. 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: probability of a boom economy is 21%, the probability of a stable growth economy is 43%, the probability of a stagnant economy is 22%, and the probability of a recession is 14%. Estimate the expected returns on the following individual investments for the coming year. What is the expected return of the stock investment? \% (Round to two decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.)