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Expected Return and Risk Compute the standard deviation given these four economic states, their likelihoods, and the potential returns:

Economic State

Probability

Return

  Fast Growth

0.20

100%    

  Slow Growth

0.50

10%    

  Recession

0.20

−1%    

  Depression

0.10

−10%    

88.06%

12.19%

38.65%

23.8%