What is the standard deviation of returns

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1. A stock is expected to earn 27 percent in a boom economy and 13 percent in a normal economy. There is a 41 percent chance the economy will boom and a 59.0 percent chance the economy will be normal. What is the standard deviation of these returns?

6.89 Percent

7.92 Percent

8.04 Percent

8.70 Percent

2. In 1980, the United States reported $-19.4 billion in balance of trade, investment income of $30.1 billion, transfer payments of $-8.2 billion, and direct investment of $10 billion. Thus:

A) The U.S. had a current account surplus of $18.9 billion

B) The U.S. had a current account deficit of $2.5 billion

C) The U.S. had a current account surplus of $2.5 billion

D) The U.S. had a current account deficit of $12.5 billion

Reference no: EM131913609

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