Variance and standard deviation (expected). Hull Consultants, a famous think tank in the Midwest, has provided probability estimates for the four potential economic states for the coming year. The probability of a boom economy is 13%, the probability of a stable growth economy is 19%, the probability of a stagnant economy is 50%, and the probability of a recession is 18%. 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? Investment Stock Corporate bond Government bond Boom 21% 9% 8% Forecasted Returns for Each Economy Stable Growth Stagnant 12% 4% 7% 5% 6% 4% Recession - 14% 4% 3% What is the variance of the stock investment? % (Round to six decimal places.) Enter your answer in the answer box and then click Check Answer. 6 parts remaining Clear All Check