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What is the standard deviation of an investment that has the following expected scenario?18% probability of a recession, 2.0% return; 65% probability of a moderate
What is the standard deviation of an investment that has the following expected scenario?18% probability of a recession, 2.0% return; 65% probability of a moderate economy, 9.5%return; 17% probability of a strong economy, 14.2% return.
A) 3.68%
B) 1.23%
C) 8.47%
D) 6.66%
Answer:A
Diff: 2
Topic:7.1 Realized and Expected Rates of Return and RiskKeywords:standard deviationPrinciples:Principle 2: There Is a Risk-Return Tradeof
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