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Variance and standard deviation (expected). Bacon and Associates, a famous Northwest think tank, has provided probability estimates for the four potential econ coming year in the following table : The probability of a boom economy is 23%, the probability of a stable growth economy is 43%, the probability of a stagnant the probability of a recession is 14%. Calculate the variance and the standard deviation of the three investments: stock, corporate bond, and government bond. If th the probabilities of the economy and the returns in each state of the economy are correct, which investment would you choose, considering both risk and return? Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only you will type. What is the variance of the stock investme A Data Table % (Round to five decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) Investment Stock Corporate bond | Government bond Boom 23% 9% 8% Forecasted Returns for Each Economy Stable Growth Stagnant 13% 2% 7% 6% 6% 5% Recession -15% 4% 3% Print Done Enter your answer in the answer box and then click Check Answer. parts o remaining Clear All Check

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