Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. State of Economy Recession Normal Boom Probability of State of Economy 0.35 0.30 0.35 Standard deviation Security Return if State Occurs -9.00% 14.00 23.00 Answer is complete but not entirely correct. 3.06%

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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Use the following information on states of the economy and stock returns to calculate the standard deviation of returns.
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
State of Economy
Recession
Normal
Boom
Probability of
State of Economy
Standard deviation
0.35
0.30
0.35
Security Return if
State Occurs
Answer is complete but not entirely correct.
3.06%
-9.00%
14.00
23.00
Transcribed Image Text:Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. State of Economy Recession Normal Boom Probability of State of Economy Standard deviation 0.35 0.30 0.35 Security Return if State Occurs Answer is complete but not entirely correct. 3.06% -9.00% 14.00 23.00
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