Compute the Standard Deviation Given These Four Economic States, Their

question 13

Multiple Choice

Compute the standard deviation given these four economic states, their likelihoods, and the potential returns: $$\begin{array} { | l | c | r | } \hline \begin{array} { l } \text { Economic } \\\text { State }\end{array} & \text { Probability } & \text { Return } \\\hline \text { Fast Growth } & 0.35 & 40 \% \\\hline \text { Slow Growth } & 0.45 & 10 \% \\\hline \text { Recession } & 0.10 & - 10 \% \\\hline \text { Depression } & 0.10 & - 100 \% \\\hline\end{array}$$

• A)7.5 percent
• B)12.65 percent
• C)39.48 percent
• D)113.69 percent

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Definitions:

Seeming Convergence

The appearance or impression of things coming together or becoming more similar over time.

Parallel Lines

Lines in a plane that never meet, regardless of how far they are extended in their respective directions.

Depth Perception

The ability to perceive the world in three dimensions (3D) and to judge the distance of objects.

Retinal Images

The projections of visual stimuli onto the retina, where light-sensitive cells convert these stimuli into neural signals for processing by the brain.