Compute the standard deviation of the rate of return

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As a financial analyst you have concluded that coming year the following relationships are possible:

Economic Condition                        Probability                     Rate of Return

Weak Economy                                    .15                           -5%

Static Economy                                   .60                               5%

Strong Economy                                   .25                               15%

Required

Question 1: Compute the standard deviation of the rate of return for the one year period.

Reference no: EM132570953

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