Variance and standard deviation (expected). Bacon and Associates, a famous Northwest think tank, has provided probability estimates for the four potential economic states for the coming year. The probability of a boom economy is 20%, the probability of a stable growth economy is 45%, the probability of a stagnant economy is 20%, and the probability of a recession is 15%. Calculate the variance and the standard deviation of the three investments: stock, corporate bond, and government bond If the estimates for both the probabilities of the economy and the returns in each state of the economy are correct, which investment would you choose, considering both risk and return? and government bond If the What is the variance of the stock investment? 96 (Round to five decimal places ) What is the standard deviation of the stock investment? % (Round to two decimal places.) Click to select your answer(s). What is the variance of the corporate bond investment? % (Round to five decimal places.) What is the standard deviation of the corporate bond investment? 1% (Round to twn decimal nlaces l Click to select your answer(s) What is the variance of the government bond investment? []% (Round to five decimal places) What is the standard deviation of the government bond investment? % (Round to two decimal places.) Click to select your answer(s) f the estimates for both the probabilities of the economy and the returns in each state of the economy are correct which investment would you choose, considering both risk and retun? (Select the best respanse ) O A. The stock investment would be the best choice because it has the highest volatlity and therefore the best chance of a high return O B. The corporate bond would be the best choice because it has the highesl expected retun and the lowest risk C. There is not enough information to make this decision. Click to select your answers) Variance and standard deviation (expected). Bacon and Associates, a famous Northwest think tank, has provided probability estimates for the four potential economic states for the coming year. The probability of a boom economy is 20%, the probability of a stable growth economy is 45%, the probability of a stagnant economy is 20%, and the probability of a recession is 15%. Calculate the variance and the standard deviation of the three investments: stock, corporate bond, and government bond If the estimates for both the probabilities of the economy and the returns in each state of the economy are correct, which investment would you choose, considering both risk and return? and government bond If the What is the variance of the stock investment? 96 (Round to five decimal places ) What is the standard deviation of the stock investment? % (Round to two decimal places.) Click to select your answer(s). What is the variance of the corporate bond investment? % (Round to five decimal places.) What is the standard deviation of the corporate bond investment? 1% (Round to twn decimal nlaces l Click to select your answer(s) What is the variance of the government bond investment? []% (Round to five decimal places) What is the standard deviation of the government bond investment? % (Round to two decimal places.) Click to select your answer(s) f the estimates for both the probabilities of the economy and the returns in each state of the economy are correct which investment would you choose, considering both risk and retun? (Select the best respanse ) O A. The stock investment would be the best choice because it has the highest volatlity and therefore the best chance of a high return O B. The corporate bond would be the best choice because it has the highesl expected retun and the lowest risk C. There is not enough information to make this decision. Click to select your answers)