Question: Compute the standard deviation given these four economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth 0.35 40% Slow Growth

Compute the standard deviation given these four economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth 0.35 40% Slow Growth 0.45 10% Recession 0.10 -10% Depression 0.10 -100% 39.48 percent 12.65 percent 113.69 percent 7.5 percent

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