Question: Problem 11-5 Standard Deviations (LO1, CFA2) Security Returns if State Occurs State of Economy Bust Boom Probability of State of Economy .50 .50 Roll -13%

 Problem 11-5 Standard Deviations (LO1, CFA2) Security Returns if State Occurs

Problem 11-5 Standard Deviations (LO1, CFA2) Security Returns if State Occurs State of Economy Bust Boom Probability of State of Economy .50 .50 Roll -13% 31 Ross 14% 7 Calculate the standard deviations for Roll and Ross by filling in the following table: (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4 decimal places.) State of Economy Probability of State of Economy Return Deviation from Expected Return Squared Return Deviation Product Roll Bust .50 .50 Boom 02=1 Ross .50 Bust Boom .50 -0.0350 0.0012 02= (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Standard Deviations Roll % Ross %

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