Compute the standard deviation of the rate of return

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You have concluded that next year the following relationships are possible:

Economic Status            Probability           Rate of Return

Weak Economy               0.25                    -5%

Static Economy            0.50                    10%

Strong Economy             0.25          15%

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

a. 15.1%

b. 10.6%

c. 7.5%

d. 5.8%

Reference no: EM132773683

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