Expected Return and Risk Compute the Standard Deviation Given These

question 3

Multiple Choice

Expected Return and Risk Compute the standard deviation given these four economic states,their likelihoods,and the potential returns:

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

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Definitions:

Equity

The concept of fairness and justice within the processes, distribution, and outcomes in society or specific situations.

Tax System

A tax system is the structured way in which taxes are collected by a government to fund public spending on goods and services.

Ceteris Paribus Error

A mistake in economic reasoning where other relevant factors or variables are assumed to remain constant when they do not.

Causality

The relationship between cause and effect, where one event is understood to be the direct consequence of another.