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Variance and standard deviation ​(expected). Hull​ Consultants, a famous think tank in the​ Midwest, has provided...

Variance and standard deviation ​(expected). Hull​ Consultants, a famous think tank in the​ Midwest, has provided probability estimates for the four potential economic states for the coming year. The probability of a boom economy is 14%​, the probability of a stable growth economy is 17​%, the probability of a stagnant economy is 49​%, and the probability of a recession is 20​%. Calculate the variance and the standard deviation​ stock?

Forecasted Returns for Each Economy

Boom

Stable

Growth

Stagnant

Recession

  Stock

25%

15​%

3​%

−13​%

  Corporate bond

9​%

8%

6​%

4​%

  Government bond

8​%

7​%

5​%

3​%

What is the variance of the stock​ investment? (round to five decimal places)

What is the standard deviation of the stock​ investment? (round to two decimal places)

Please show ALL work

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