Compute the Standard Deviation of the Expected Return Given These

question 1

Multiple Choice

Compute the standard deviation of the expected return given these three economic states, their likelihoods, and the potential returns: Economic State
Probability
Return
Fast Growth
0) 2
30%
Slow Growth
0) 5
6%
Recession
0) 3
-2%

• A)8.4 percent
• B)10.87 percent
• C)11.34 percent
• D)24.09 percent

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Definitions:

Active

Engaged in action; being in a state of movement, function, or operation.

Destructive

Causing great and irreparable harm or damage.

Distributive Strategy

Approach used to decide how resources or rewards are shared or distributed among group members.

Conflict Management

The practice of identifying and addressing disputes in a fair, effective, and reasonable manner to prevent escalation.