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

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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