Question: QUESTION 9 8 po Consider an investment whose returns will depend on the state of the economy which could be a recession, a normal, a

QUESTION 9 8 po Consider an investment whose returns will depend

QUESTION 9 8 po Consider an investment whose returns will depend on the state of the economy which could be a recession, a normal, a boom or a super expansion. The following table gives the probability of each state returns for each state. State of Economy Probability of Occurring Return on Investment Recession 10.15 1-10% Normal 0.50 10% Boom 20% Super Expansion 10.15 30% Calculate the standard deviation of this investment. Round your final answer to two decimal places. (8 marks)

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