Compute the standard deviation of the expected return given these three economic states,their likelihoods,and the potential returns:
A) 6.8 percent
B) 16.5 percent
C) 21.5 percent
D) 46.4 percent

Question

Compute the standard deviation of the expected return given these three economic states,their likelihoods,and the potential returns: 
A) 6.8 percent 
B) 16.5 percent 
C) 21.5 percent 
D) 46.4 percent

Quizplus · Accepted Answer

Expected return = 0.1 × 50% + 0.6 × 8% + 0.3 × −10% = 6.8%.
Standard Deviation = 11ea8218_297f_359d_bbd8_8f29cf9e8e53_TB1326_00 = 11ea8218_297f_5cae_bbd8_79fac6d8b4fb_TB1326_00 = 16.4973%

Compute the Standard Deviation of the Expected Return Given These