Compute the Standard Deviation of the Expected Return Given These

question 77

Multiple Choice

Compute the standard deviation of the expected return given these three economic states, their likelihoods, and the potential returns:
$$\begin{array}{l}\begin{array} { c c r } \text { Eccrorric State }&\text { Probability } & \text { Return } \\\text { fast growth }&0.1 & 50 \% \\\text {slow growth }&0.6 & 8\% \\\text { recession }&0.3 & - 10\%\end{array}\end{array}$$

• A) 6.8 percent
• B) 16.5 percent
• C) 21.5 percent
• D) 46.4 percent

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Definitions:

Electronic Exchange

A platform or system that facilitates the trading of financial instruments, commodities, or other products through electronic systems without the need for physical trading floors.

Sell-Side Marketplace

B2B model in which organizations sell to other organizations from their own private e-marketplace or from a third-party site.

Cyber-Squatting

The practice of registering, selling, or using a domain name with the intent of profiting from the goodwill of a trademark belonging to someone else.

Domain Names

The name assigned to an Internet site, which consists of multiple parts, separated by dots, that are translated from right to left.