A Manager Is Attempting to Assess the Probability of a Recession

Multiple Choice

A manager is attempting to assess the probability of a recession ending in the next six months and its impact on expected profitability.The manager believes there is a 33 percent chance the recession will end in six months and profits will return to $100 million.However,there is a 67 percent chance the recession will not end in six months,resulting in a $7 million loss.The standard deviation of profits over the next six months is:

A) $50.31 million.
B) $57.40 million.
C) $28.31 million.
D) $0 million.