You have invested in an asset that has the following expected returns across the three potential states of the economy over the next year:

Calculate the expected return and standard deviation of this asset (correct to one decimal place).

Question

You have invested in an asset that has the following expected returns across the three potential states of the economy over the next year: 
  
   
 Calculate the expected return and standard deviation of this asset (correct to one decimal place).

Accepted Answer

Expected return = 4.1%; Standard deviation = 6.7%

Answer

Expected return = 5.1%; Standard deviation = 7.9%

Answer

Expected return = 4.3%; Standard deviation = 6.7%

Answer

Expected return = 4.1%; Standard deviation = 7.9%

Answer

Expected return = 4.3%; Standard deviation = 7.9%

State	Probability	Return
1	0.25	-6%
2	0.55	5%
3	0.20	14%

Crowdly

You have invested in an asset that has the following expected returns across the...

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