What Is the Standard Deviation of an Investment That Has

question 52

Multiple Choice

What is the standard deviation of an investment that has the following expected scenario? 18% probability of a recession, 2.0% return; 65% probability of a moderate economy, 9.5% return; 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:

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