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Magee Incs 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

Magee 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? (Hint: Use the formula for the standard deviation of a population, not a sample.)

Economic Conditions Table
Economic
Conditions
Prob. Return
Strong 30% 32.0%
Normal 40% 10.0%
Weak 30% -16.0%

Select one:

a. 21.55%

b. 20.52%

c. 19.55%

d. 18.62%

e. 17.69%

 

May 20 2020 View more View Less

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