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 in the following table: . The probability of a boom economy is 20%, the probability of a stable growth economy is 43%, the probability of a stagnant economy is 25%, and the probability of a recession is 12%. 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? What is the variance of the stock investment? What is the standard deviation of the stock investment? What is the variance of the corporate bond investment? What is the standard deviation of the corporate bond investment? What is the variance of the government bond investment? What is the standard deviation of the government bond investment