Return on Asset D in State Return on Asset E in State Return on Asset F in State Boom 0.35 0.060 0.310 0.25 Normal 0.50 0.060 0.180 0.20 Recession 0.15 0.060 -0.210 0.10 1. Calculate the standard deviation for each security.

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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State of
Economy
Probability
of State
Return on Asset
D
in State
Return on Asset
E
in State
Return on Asset
F
in State
Boom 0.35 0.060 0.310 0.25
Normal 0.50 0.060 0.180 0.20
Recession 0.15 0.060 -0.210 0.10

1. Calculate the standard deviation for each security.

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