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:

Adolescent Growth Spurt

indicates a rapid increase in height and weight during puberty, resulting from hormonal changes.

National Bureau of Economic Research

An American private nonprofit research organization that conducts economic research and disseminates its findings among academics, policymakers, and professionals.

Obesity Rates

Obesity rates indicate the proportion of a population that is significantly overweight, based on measures such as the Body Mass Index (BMI), and can highlight public health concerns.

Neuroscience

The scientific study of the nervous system, encompassing its structure, function, development, genetics, and pathology.