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Tommie has made an investment that will generate returns

Tommie has made an investment that will generate returns that are subject to the state of the economy during the year. Use the following information to calculate the standard deviation of the return distribution for Tommie's investment

State

Return

Probability

Weak

0.13

0.3

0.2

0.4

Great

0.25

0.3

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Finance Basics: Tommie has made an investment that will generate returns

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Finance Basics: Tommie has made an investment that will generate returns

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