Based on the following information, what is the standard deviation of returns? State of Economy Recession Normal Boom Probability of State of Economy .21 .48 .31 Rate of Return if State Occurs -.089 .104 .214
Based on the following information, what is the standard deviation of returns? State of Economy Recession Normal Boom Probability of State of Economy .21 .48 .31 Rate of Return if State Occurs -.089 .104 .214
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Based on the following information, what is the standard deviation of returns?
Probability
of State of
State of Economy
Rate of Return
Economy
Recession
if State Occurs
21
Normal
Boom
-.089
.48
.104
.31
.214
Multiple Choice
10.74%
13.06%
11.53%
16.77%
15.38%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32973613-eba3-44fb-9613-24c76949a18d%2F2cb8928c-5520-477e-b5b2-393ae0bc5b27%2Ftotn93g_processed.png&w=3840&q=75)
Transcribed Image Text:ces
Based on the following information, what is the standard deviation of returns?
Probability
of State of
State of Economy
Rate of Return
Economy
Recession
if State Occurs
21
Normal
Boom
-.089
.48
.104
.31
.214
Multiple Choice
10.74%
13.06%
11.53%
16.77%
15.38%
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