Calculate the standard deviations for roll and ross

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Reference no: EM131982981



Security Returns
If State Occurs
  State of Probability of
  Economy State of Economy Roll     Ross     
  Bust .40 -10 % 21 %
  Boom .60 28
8

Calculate the standard deviations for Roll and Ross by filling in the following table (verify your answer using returns expressed in percentages as well as decimals):

(Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your Standard deviation answers to 2 decimal places and other answers to 4 decimal places. Omit the "%" sign in your response.)

State
of Economy
Probability of
State of Economy
Return Deviation
from Expected Return
Squared Return
Deviation
Product
  Roll



    Bust .40
          
    Boom .60
          
   






s2 =   
   



  Ross



    Bust .40
         
    Boom .60
         
   






s2 =   
   





Standard Deviations
  Roll %
  Ross %

Reference no: EM131982981

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