Compute the standard deviation given these four economic states, their likelihoods, and the potential returns:
|
Economic State
|
Probability
|
Return
|
|
Fast Growth
|
0.20
|
100%
|
|
Slow Growth
|
0.50
|
10%
|
|
Recession
|
0.20
|
-1%
|
|
Depression
|
0.10
|
-10%
|
a) 88.06%
b) 12.19%
c) 38.65%
d) 23.8%