Jill 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 show below. What's the standard deviation of the estimated returns? Economic Conditions Strong Normal Weak 19.55% 18.98% Probability 30% 40% 30% Return 34.0% 10.0% -15.0%

Essentials of Business Analytics (MindTap Course List)
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ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter15: Decision Analysis
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Problem 4P: Investment advisors estimated the stock market returns for four market segments: computers,...
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Jill 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?
Economic Conditions
Strong
Normal
Weak
19.55%
18.98%
19.37%
18.62%
Probability
30%
40%
30%
Return
34.0%
10.0%
-15.0%
Transcribed Image Text:Jill 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? Economic Conditions Strong Normal Weak 19.55% 18.98% 19.37% 18.62% Probability 30% 40% 30% Return 34.0% 10.0% -15.0%
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