Calculating returns and standard deviation


Task: Calculating Returns and Standard Deviation

Based on the following information, calculate the expected return and standard deviation:

State of Economy

Probability of State of Economy

Rate of Return if State Occurs

Depression

.10

-0.045

Recession

.20

0.044

Normal

.50

0.120

Boom

.20

0.207

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Finance Basics: Calculating returns and standard deviation
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