What is standard deviation under ima interest rate forcast

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Problem 1: Given her evaluation of current economic conditions, Ima Nutt believes there is a 50 percent probability of recession, a 20 percent change of continued steady growth, and a 30 percent probability of inflationary growth. For each possibility, Ima has developed an interest rate forecast for long-term Treasury bond interest rates accordingly: 6%, 9% and 14%. What is the standard deviation under Ima's interest rate forecast?

Group of answer choices

Option 1: 9.0%
Option 2: 0.12%
Option 3: 3.46%
Option 4: 2.91%

Reference no: EM132915243

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