Compute the Standard Deviation Given These Four Economic States, Their

Compute the standard deviation given these four economic states, their likelihoods, and the potential returns:
$$\begin{array} { l c r } \text { Economic State } & \text { Probability } & \text { Retum } \\\text { Fast Growth } & 0.35 & 40 \% \\\text { Slow Growth } & 0.45 & 10 \% \\\text { Recession } & 0.10 & - 10 \% \\\text { Depression } & 0.10 & - 100 \%\end{array}$$

A) 7.5 percent
B) 12.65 percent
C) 39.48 percent
D) 113.69 percent

Correct Answer:

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