Compute the Standard Deviation Given These Four Economic States, Their

question 34

Multiple Choice

Compute the standard deviation given these four economic states, their likelihoods, and the potential returns:
$$\begin{array}{l}\begin{array} { c c r } \text { Eccrorric State }&\text { Probability } & \text { Return } \\\text { fast growth }&0.20 & 100 \% \\\text {slow growth }&0.50 & 10\% \\\text { recession }&0.20 & - 1\%\\\text { depression }&0.10 & - 10\%\end{array}\end{array}$$

• A) 12.19 percent
• B) 23.8 percent
• C) 38.65 percent
• D) 88.06 percent