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What Is the Standard Deviation of an Investment That Has

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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.


Definitions:

Anticipation

The act of expecting or foreseeing something, often involving preparatory action or adjustments based on predictions about future events or trends.

Inflation

The speed at which the overall price level of goods and services increases, diminishing buying power.

Monetarists

Economists who believe that variations in the money supply have major influences on national output in the short run and the price level over longer periods, as well as on inflation.

Money Supply

The overall quantity of currency and other liquid instruments circulating in an economy at a particular time.

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