Compute the Standard Deviation Given These Four Economic States, Their

question 112

Multiple Choice

Compute the standard deviation given these four economic states, their likelihoods, and the potential returns:
$$\begin{array} { l c r } \text { Economic State } & \text { Probability } & \text { Retum } \\\text { Fast Growth } & 0.35 & 40 \% \\\text { Slow Growth } & 0.45 & 10 \% \\\text { Recession } & 0.10 & - 10 \% \\\text { Depression } & 0.10 & - 100 \%\end{array}$$

• A) 7.5 percent
• B) 12.65 percent
• C) 39.48 percent
• D) 113.69 percent

---

Definitions:

Slowdown

A reduction in the speed or rate of activities, often referring to economic downturns or decreased productivity.

Enthusiasm

Intense and eager enjoyment, interest, or approval.

Yerkes-Dodson Law

A theory that suggests there is an optimal level of arousal for performance, and that too little or too much arousal can adversely affect task performance.

Mental Arousal

The psychological state of being alert and mentally engaged, often in response to stimulation or challenge.