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Compute the Standard Deviation Given These Four Economic States, Their

Question 34

Multiple Choice

Compute the standard deviation given these four economic states, their likelihoods, and the potential returns:
 Eccrorric State  Probability  Return  fast growth 0.20100%slow growth 0.5010% recession 0.20−1% depression 0.10−10%\begin{array}{l}\begin{array} { c c r } \text { Eccrorric State }&\text { Probability } & \text { Return } \\\text { fast growth }&0.20 & 100 \% \\\text {slow growth }&0.50 & 10\% \\\text { recession }&0.20 & - 1\%\\\text { depression }&0.10 & - 10\%\end{array}\end{array}


A) 12.19 percent
B) 23.8 percent
C) 38.65 percent
D) 88.06 percent

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