Following are four economic states, their likelihoods, and the potential returns:   Economic State Probability   Return   Fast growth 0.30   60 %   Slow growth 0.50   13     Recession 0.15   –15     Depression 0.05   -45       Compute the expected return and standard deviation. (Round your answers to 2 decimal places.) EXPECTED RETURN                   % 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
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Following are four economic states, their likelihoods, and the potential returns:
 

Economic State Probability   Return  
Fast growth 0.30   60 %  
Slow growth 0.50   13    
Recession 0.15   –15    
Depression 0.05   -45    
 


Compute the expected return and standard deviation. (Round your answers to 2 decimal places.)

EXPECTED RETURN                   %
STANDARD DEVIATION.              %
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