Variance and standard deviation ?(expected). Hull? Consultants, a famous think tank in the? Midwest, has provided probability estimates...

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Finance

Variance and standard deviation
?(expected).
Hull? Consultants, a famous think tank in the? Midwest, hasprovided probability estimates for the four potential economicstates for the coming year. The probability of a boom economyis
10 %?,
the probability of a stable growth economy is
17%,
the probability of a stagnant economy is
55?%,
and the probability of a recession is
18?%.
Calculate the variance and the standard deviation of the three?investments: stock, corporate? bond, and government bond. If theestimates for both the probabilities of the economy and the returnsin each state of the economy are? correct, which investment wouldyou? choose, considering both risk and? return???
??
??Investment
Forecasted Returns for Each Economy
Boom
Stable
Growth
Stagnant
Recession
??Stock
30?%
12?%
3?%
?10?%
??Corporate bond
10?%
7?%
6%
4?%
??Government bond
9%
6%
5?%
3?%
?Hint: Make sure to round all intermediate calculations to atleast seven? (7) decimal places. The input? instructions, phrasesin parenthesis after each answer? box, only apply for the answersyou will type.

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Variance and standard deviation?(expected).Hull? Consultants, a famous think tank in the? Midwest, hasprovided probability estimates for the four potential economicstates for the coming year. The probability of a boom economyis10 %?,the probability of a stable growth economy is17%,the probability of a stagnant economy is55?%,and the probability of a recession is18?%.Calculate the variance and the standard deviation of the three?investments: stock, corporate? bond, and government bond. If theestimates for both the probabilities of the economy and the returnsin each state of the economy are? correct, which investment wouldyou? choose, considering both risk and? return???????InvestmentForecasted Returns for Each EconomyBoomStableGrowthStagnantRecession??Stock30?%12?%3?%?10?%??Corporate bond10?%7?%6%4?%??Government bond9%6%5?%3?%?Hint: Make sure to round all intermediate calculations to atleast seven? (7) decimal places. The input? instructions, phrasesin parenthesis after each answer? box, only apply for the answersyou will type.

?? ??Investment	Forecasted Returns for Each Economy
?? ??Investment	Boom	Stable Growth	Stagnant	Recession
??Stock	30?%	12?%	3?%	?10?%
??Corporate bond	10?%	7?%	6%	4?%
??Government bond	9%	6%	5?%	3?%