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Standard deviation of the estimated returns

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Carson Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will have the probability distribution shown below. What's the standard deviation of the estimated returns?

Economic

Conditions        Prob.               Return

Strong             30%                32.0%

Normal             40%                10.0%

Weak               30%                -16.0%

Reference no: EM132395282

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