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Problem 11 5 Security Returns If State Occurs State of Economy Probability of State of Economy Roll Ross Bust 30 Ac o11 % 12 % Boom 70 29 5 Calculate the standard

Problem 11-5

    Security Returns If State Occurs
  State of
  Economy
Probability of
  State of Economy
 
        Roll        Ross
  Bust .30 Ac€?o11 % 12 %
  Boom .70 29   5  
 

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): (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your Standard deviation answers to 2 decimal places and other answers to 4 decimal places. Omit the "%" sign in your response.)

State of
Economy
   Probability of
  State of Economy
   Return Deviation
  from Expected Return
    Squared Return
Deviation
     Product
  Roll        
    Bust .30           
    Boom .70           
           
      A?A?2 =   
           
  Ross        
    Bust .30           
    Boom .70           
           
      A?A?2 =   
           
 
  Standard Deviations
  Roll %
  Ross %

Apr 30 2020 View more View Less

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