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The manager of Carson Inc. predicts that the economy will be either strong, nor...
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The manager of Carson Inc. predicts that the economy will be either strong, normal, or weak during the course of the upcoming year, and that the company's returns will follow the probability distribution displayed below.
Economic scenario
|
Probability of occurrence
|
Rate of return
|
Strong
|
30%
|
32%
|
Normal
|
40%
|
10%
|
Weak
|
30%
|
–16%
|
What is the standard deviation of the estimated returns?
100%
0%
0%
0%