Compute the standard deviation given these four economic states,their likelihoods,and the potential returns:
A) 12.19 percent
B) 23.8 percent
C) 38.65 percent
D) 88.06 percent

Question

Compute the standard deviation given these four economic states,their likelihoods,and the potential returns: 
A) 12.19 percent 
B) 23.8 percent 
C) 38.65 percent 
D) 88.06 percent

Quizplus · Accepted Answer

Expected return = 0.2 × 100% + 0.5 × 10% + 0.20 × −1% + 0.10 × −10% = 23.8%.
Standard Deviation = 11ea8218_2983_0636_bbd8_a173c262d686_TB1326_00 = 11ea8218_2983_0637_bbd8_5f34958e6974_TB1326_00 = 39.48%

Compute the Standard Deviation Given These Four Economic States,their Likelihoods,and