Compute the standard deviation of the expected return given these three economic states,their likelihoods,and the potential returns:
A) 8.4 percent
B) 10.87 percent
C) 11.34 percent
D) 24.09 percent

Question

Compute the standard deviation of the expected return given these three economic states,their likelihoods,and the potential returns: 
A) 8.4 percent 
B) 10.87 percent 
C) 11.34 percent 
D) 24.09 percent

Quizplus · Accepted Answer

Expected return = 0.2 × 30% + 0.5 × 6% + 0.3 × −2% = 8.4%.
Standard Deviation = 11ea8218_2980_4710_bbd8_3bb391ae15c8_TB1326_00 = 11ea8218_2980_9531_bbd8_25b89955a800_TB1326_00 = 11.34%

Compute the Standard Deviation of the Expected Return Given These