Compute the standard deviation given these four economic states,their likelihoods,and the potential returns:
A) 6.71 percent
B) 22.5 percent
C) 23.37 percent
D) 52.20 percent

Question

Compute the standard deviation given these four economic states,their likelihoods,and the potential returns: 
A) 6.71 percent 
B) 22.5 percent 
C) 23.37 percent 
D) 52.20 percent

Quizplus · Accepted Answer

Expected return = 0.4 × 50% + 0.4 × 10% + 0.10 × −10% + 0.10 × −5% = 22.5%.
Standard Deviation = 11ea8218_2982_42e3_bbd8_1be21f7f19fc_TB1326_00 = 11ea8218_2982_69f4_bbd8_f793701c146a_TB1326_00 = 23.37%

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