standard deviations calculate the standard deviations for roll and ross by filling i 664844

Aug 30, 2021 | Uncategorized

 

Security   Returns If State Occurs

State of Economy

Probability of State of Economy

Roll

Ross

Bust

0.3

10%

21%

Boom

0.7

28

8

Standard Deviations Calculate the standard deviations for Roll and Ross by filling in the following table (verify your answer using returns expressed in percentages as well as decimals):

(1)
  State of
  Economy

(2)
  Probability of
  State of Economy

(3)
  Return Deviation
  from Expected Return

(4)
  Squared Return
  Deviation

(5)
  Product
  (2)X(4)

Roll

        

Bust

        

Boom

        

Ross

        

Bust

        

Boom