Question: Compute the standard deviation given these four economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth 0.20 100% Slow Growth

Compute the standard deviation given these four economic states, their likelihoods, and the potential returns:

Economic State Probability Return
Fast Growth 0.20 100%
Slow Growth 0.50 10%
Recession 0.20 1%
Depression 0.10 -10%

a.

12.19 percent
b.

23.8 percent
c.

38.65 percent
d.

88.06 percent

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