Compute the Standard Deviation Given These Four Economic States, Their

question 93

Multiple Choice

Compute the standard deviation given these four economic states, their likelihoods, and the potential returns: $$\begin{array} { | l | c | r | } \hline \begin{array} { l } \text { Economic } \\\text { State }\end{array} & \text { Probability } & \text { Return } \\\hline \text { Fast Growth } & 0.20 & 100 \% \\\hline \text { Slow Growth } & 0.50 & 10 \% \\\hline \text { Recession } & 0.20 & - 1 \% \\\hline \text { Depression } & 0.10 & - 10 \% \\\hline\end{array}$$

• A)12.19 percent
• B)23.8 percent
• C)38.65 percent
• D)88.06 percent

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Definitions:

Consistency

The quality of always acting or behaving in the same way, exhibiting uniformity in essential traits.

Consensus

A general agreement or the practice of developing such an agreement among the members of a group or community.

Frequency

The rate at which an event or occurrence happens within a given period of time.

Stereotype

A generalized belief or expectation about a particular group or class of people that individuals apply to members of that group.