Use the following table: $$\begin{array} { | l | c | c | c | c | }
\hline \begin{array} { l }
\text { States of the } \
\text { Economy }
\end{array} & \begin{array} { c }
\text { Probability of the } \
\text { State }
\end{array} & \begin{array} { c }
\text { 3-Month } \
\text { T-Bill }
\end{array} & \begin{array} { c }
\text { Large-Company } \
\text { Stock }
\end{array} & \begin{array} { c }
\text { Small-Company } \
\text { Stock }
\end{array} \
\hline \text { Boom } & 0.3 & 4 \% & 10 \% & 30 \% \
\hline \text { Steady } & 0.5 & 4 \% & 5 \% & 20 \% \
\hline \text { Recession } & 0.2 & 4 \% & 0 \% & 10 \% \
\hline
\end{array}$$ Estimate the difference between the standard deviations for large- and small-company stocks.Which is larger and by how much?
A)Small company stocks by 49.00%
B)Small company stocks by 36.75%
C)Large company stocks by 12.25%
D)Small company stocks by 3.50%

Question

Use the following table: $$\begin{array} { | l | c | c | c | c | } 
\hline \begin{array} { l } 
\text { States of the } \
\text { Economy }
\end{array} & \begin{array} { c } 
\text { Probability of the } \
\text { State }
\end{array} & \begin{array} { c } 
\text { 3-Month } \
\text { T-Bill }
\end{array} & \begin{array} { c } 
\text { Large-Company } \
\text { Stock }
\end{array} & \begin{array} { c } 
\text { Small-Company } \
\text { Stock }
\end{array} \
\hline \text { Boom } & 0.3 & 4 \% & 10 \% & 30 \% \
\hline \text { Steady } & 0.5 & 4 \% & 5 \% & 20 \% \
\hline \text { Recession } & 0.2 & 4 \% & 0 \% & 10 \% \
\hline
\end{array}$$ Estimate the difference between the standard deviations for large- and small-company stocks.Which is larger and by how much?
A)Small company stocks by 49.00%
B)Small company stocks by 36.75%
C)Large company stocks by 12.25%
D)Small company stocks by 3.50%

Quizplus · Accepted Answer

The Answer of Use the following table: $$\begin{array} { | l | c | c | c | c | } 
\hline \begin{array} { l } 
\text { States of the } \
\text { Economy }
\end{array} & \begin{array} { c } 
\text { Probability of the } \
\text { State }
\end{array} & \begin{array} { c } 
\text { 3-Month } \
\text { T-Bill }
\end{array} & \begin{array} { c } 
\text { Large-Company } \
\text { Stock }
\end{array} & \begin{array} { c } 
\text { Small-Company } \
\text { Stock }
\end{array} \
\hline \text { Boom } & 0.3 & 4 \% & 10 \% & 30 \% \
\hline \text { Steady } & 0.5 & 4 \% & 5 \% & 20 \% \
\hline \text { Recession } & 0.2 & 4 \% & 0 \% & 10 \% \
\hline
\end{array}$$ Estimate the difference between the standard deviations for large- and small-company stocks.Which is larger and by how much?
A)Small company stocks by 49.00%
B)Small company stocks by 36.75%
C)Large company stocks by 12.25%
D)Small company stocks by 3.50%

Use the Following Table Estimate the Difference Between the Standard Deviations for Large- and |