Calculate the standard deviation of return as the square root of vaiance for Highland

Highland Investment, a venture investor, is considering investing in a software venture opportunity. However, the rate of return to be realized next year is likely to vary with the economic climate that actually occurs. Following are three possible economic outcomes, the probability that each one will occur, and the rate of return projected for each outcome:

Economic Probability of Rate of

Climate Occurrence Return

Recession .25 -20.0%

Normal .50 15.0%

Rapid Growth .25 30.0%