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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) 1
50%
Slow Growth
0) 6
8%
Recession
0) 3
-10%
Predict Phenomena
The act of forecasting or making predictions about future events based on current or past data.
Empirical Inquiry
The method of seeking knowledge through observation, experimentation, and empirical evidence rather than through theory or pure logic.
Disconfirmation
The action of proving a belief, hypothesis, or theory to be wrong or false.
Confirmation
The act of verifying or validating a hypothesis, statement, or belief by obtaining evidence that supports it.
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