Compute the Expected Return and Standard Deviation Given These Four

question 7

Multiple Choice

Compute the expected return and standard deviation given these four economic states, their likelihoods, and the potential returns: $$\begin{array} { | l | l | l | } \hline \begin{array} { l } \text { Economic } \\\text { State }\end{array} & \text { Probability } & \text { Return } \\\hline \text { Fast Growth } & 0.20 & 60 \% \\\hline \text { Slow Growth } & 0.50 & 13 \% \\\hline \text { Recession } & 0.15 & - 15 \% \\\hline \text { Depression } & 0.15 & - 45 \% \\\hline\end{array}$$

• A)9.5 percent; 32.43 percent
• B)9.5 percent; 21.96 percent
• C)9.5 percent; 18.97 percent
• D)9.5 percent; 29.18 percent

---

Definitions:

Preconventional Morality

The first level of Kohlberg's theory of moral development, where moral reasoning is based primarily on consequences and personal benefits.

Postconventional Morality

A stage of moral development in which individuals reason based on personal principles and values that may differ from societal norms.

Ethical Principles

Fundamental guidelines that influence decision-making and behavior, emphasizing concepts such as fairness, respect, responsibility, and integrity.

Self-interest

Acting in a way that is beneficial to oneself, driven by personal gain or advantage.