Question: (a) Compute the standard deviation of the expected return given the economic states, their likelihoods, and the potential returns. Probability Return Economic State Fast Growth

(a) Compute the standard deviation of the expected return given the

(a) Compute the standard deviation of the expected return given the economic states, their likelihoods, and the potential returns. Probability Return Economic State Fast Growth Slow Growth Recession Depression 0.3 0.5 6 x 25% 6% -5% -17% 2x (8 marks)

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