You have chosen a finance major because you would like to be an investment banker. You think that your chance of getting a well-paid job in an investment bank is about 20 per cent. If you get the job you will have a starting salary of $300,000 per year.

However, if you don't make the cut then you will work at a fast food outlet for $40,000 per year. What is the standard deviation of your expected starting salary?