Problem 10-17 Expected Return Risk (LG10-1) Following are three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.3 40 % Slow growth 0.4 10...

Problem 10-17 Expected Return Risk (LG10-1)
Following are three economic states, their likelihoods, and the potential returns:


Economic State Probability Return

Fast growth 0.3 40 %

Slow growth 0.4 10

Recession 0.3 –25

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Determine the standard deviation of the expected return. (Do not round intermediate calculations and round your answer to 2 decimal places.)