Compute the standard deviation of the rate of return

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Reference no: EM132780267

Question - 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%

Required - 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: EM132780267

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