State of Economy Bust Boom Probability of State of Economy 0.40 0.60 Security Returns if State Occurs Roll Ross -10% 21% 28 8 Calculate the standard deviations for Roll and Ross by filling in the following table Note: A negative value should be indicated by a minus sign. Do not round intermediate calculation decimal places.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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State of
Economy
Probability of State
Security Returns if State Occurs
of Economy
Roll
Ross
Bust
Boom
0.40
0.60
-10%
21%
28
8
Calculate the standard deviations for Roll and Ross by filling in the following table
Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4
decimal places.
State of
Economy
Probability of
State of
Economy
Return
Deviation from
Expected
Return
Squared
Return
Deviation
Product
Roll
Bust
0.40
Boom
0.60
02
Ross
Bust
0.40
Boom
0.60
-0.0520
0.0027
02=
Transcribed Image Text:State of Economy Probability of State Security Returns if State Occurs of Economy Roll Ross Bust Boom 0.40 0.60 -10% 21% 28 8 Calculate the standard deviations for Roll and Ross by filling in the following table Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4 decimal places. State of Economy Probability of State of Economy Return Deviation from Expected Return Squared Return Deviation Product Roll Bust 0.40 Boom 0.60 02 Ross Bust 0.40 Boom 0.60 -0.0520 0.0027 02=
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