Security Returns if State Occurs State of Economy Bust Boom Probability of State of Economy Roll 0.40 0.60 -10% 28 Ross 21% 8 Calculate the standard deviations for Roll and Ross by filling in the following table Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4 decimal places. State of Economy Probability of State of Economy Return Deviation from Expected Return Squared Return Deviation Product Roll Bust 0.40 -0.2300 Boom 0.60 Ross Bust 0.40 Boom 0.60 -0.0520 0.0027 g²= D Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Roll Ross Standard Deviations 18.62 % 6.37%

Essentials of Business Analytics (MindTap Course List)
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ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter8: Time Series Analysis And_forecasting
Section: Chapter Questions
Problem 18P: Consider the following time series: Construct a time series plot. What type of pattern exists in...
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State of Probability of State of
Economy
Bust
Boom
Economy
0.40
0.60
Security Returns if State Occurs
Roll
-10%
28
Ross
21%
8
Calculate the standard deviations for Roll and Ross by filling in the following table
Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4
decimal places.
State of
Economy
Probability of
State of
Economy
Return
Deviation from
Expected
Return
Squared
Return
Deviation
Product
Roll
Bust
0.40
-0.2300
Boom
0.60
Ross
Bust
0.40
Boom
0.60
-0.0520
0.0027
Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
Roll
Ross
Standard
Deviations
18.62 %
6.37 %
Transcribed Image Text:State of Probability of State of Economy Bust Boom Economy 0.40 0.60 Security Returns if State Occurs Roll -10% 28 Ross 21% 8 Calculate the standard deviations for Roll and Ross by filling in the following table Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4 decimal places. State of Economy Probability of State of Economy Return Deviation from Expected Return Squared Return Deviation Product Roll Bust 0.40 -0.2300 Boom 0.60 Ross Bust 0.40 Boom 0.60 -0.0520 0.0027 Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Roll Ross Standard Deviations 18.62 % 6.37 %
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