Compute the Standard Deviation Given These Four Economic States, Their

question 90

Multiple Choice

Compute the standard deviation given these four economic states, their likelihoods, and the potential returns:
$$\begin{array}{l}\begin{array} { c c r } \text { Eccrorric State }&\text { Probability } & \text { Return } \\\text { fast growth }&0.40 & 50 \% \\\text {slow growth }&0.40 & 10\% \\\text { recession }&0.10 & - 10\%\\\text { depression }&0.10 & - 5\%\end{array}\end{array}$$

• A) 6.71 percent
• B) 22.5 percent
• C) 23.37 percent
• D) 52.20 percent