Connect Only Problem 10-9 Expected Return Risk (LG10-1) Following are three economic states, their likelihoods, and the potential returns: Economic State Fast growth Slow growth Probability 0.17 0.50 0.33 Return 21% 10 -21 Recession Determine the standard deviation of the expected return. Note: Do not round intermediate calculations and round your answer to 2 decimal places. Standard deviation %
Connect Only Problem 10-9 Expected Return Risk (LG10-1) Following are three economic states, their likelihoods, and the potential returns: Economic State Fast growth Slow growth Probability 0.17 0.50 0.33 Return 21% 10 -21 Recession Determine the standard deviation of the expected return. Note: Do not round intermediate calculations and round your answer to 2 decimal places. Standard deviation %
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
Question
F1
![Connect Only Problem 10-9 Expected Return Risk (LG10-1)
Following are three economic states, their likelihoods, and the potential returns:
Economic State
Fast growth
Slow growth
Probability
0.17
0.50
0.33
Return
21%
10
-21
Recession
Determine the standard deviation of the expected return.
Note: Do not round intermediate calculations and round your answer to 2 decimal places.
Standard deviation
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc27b3442-df04-493f-804f-ac860f25f9a1%2Fd42079d6-ce4d-4576-94f0-90a33240f613%2Fn2c0egn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Connect Only Problem 10-9 Expected Return Risk (LG10-1)
Following are three economic states, their likelihoods, and the potential returns:
Economic State
Fast growth
Slow growth
Probability
0.17
0.50
0.33
Return
21%
10
-21
Recession
Determine the standard deviation of the expected return.
Note: Do not round intermediate calculations and round your answer to 2 decimal places.
Standard deviation
%
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