Following are three economic states their likelihoods and


Following are three economic states, their likelihoods, and the potential returns:

Economic State                Probability                     Return

Fast growth                            0.22                              29 %

Slow growth                           0.39                              4

Recession                              0.39                           –19

Determine the standard deviation of the expected return.

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Financial Management: Following are three economic states their likelihoods and
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