What Is the Standard Deviation of an Investment That Has

question 83

Multiple Choice

What is the standard deviation of an investment that has the following expected scenario? If there is an 18% probability of a recession,2.0% return;if there is a 65% probability of a moderate economy,9.5% return;if there is a 17% probability of a strong economy,14.2% return.

• A)3.68%
• B)1.23%
• C)8.47%
• D)6.66%

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Definitions:

Consumer Prices

The prices of goods and services purchased by households.

Minimum Wage

The lowest legal hourly pay rate that an employer can pay an employee.

AOL Corporation

An American web portal and online service provider, which historically offered a branded internet service that allowed users to connect to the internet and access its own network of content.

Consumer Price Index

The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate inflation.