Compute the Standard Deviation of the Expected Return Given These

question 100

Multiple Choice

Compute the standard deviation of the expected return given these three economic states, their likelihoods, and the potential returns: $$\begin{array} { | l | c | r | } \hline \begin{array} { l } \text { Economic } \\\text { State }\end{array} & \text { Probability } & \text { Return } \\\hline \text { Fast Growth } & 0.2 & 30 \% \\\hline \text { Slow Growth } & 0.5 & 6 \% \\\hline \text { Recession } & 0.3 & - 2 \% \\\hline\end{array}$$

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

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Definitions:

Expression

A combination of symbols that represents a mathematical quantity or relationship.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression (e.g., 4 in 4x).

Expression

A combination of symbols and numbers that represents a mathematical computation or quantity.

Distributive Property

A property indicating that the multiplication of a number by a sum is equal to the sum of the individual multiplications, represented as \(a(b + c) = ab + ac\).