Compute the Standard Deviation Given These Four Economic States, Their

Multiple Choice

Compute the standard deviation given these four economic states, their likelihoods, and the potential returns: $$\begin{array} { | l | c | r | } \hline \begin{array} { l } \text { Economic } \\\text { State }\end{array} & \text { Probability } & \text { Return } \\\hline \text { Fast Growth } & 0.20 & 100 \% \\\hline \text { Slow Growth } & 0.50 & 10 \% \\\hline \text { Recession } & 0.20 & - 1 \% \\\hline \text { Depression } & 0.10 & - 10 \% \\\hline\end{array}$$

A) 12.19 percent
B) 23.8 percent
C) 38.65 percent
D) 88.06 percent