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HW Score: 74.44%, 74.44 of 100 pts 7 of 7 (6 complete) Score: 0 of 20 pts Question Help P8-16 (similar to) 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 15%, the probability of a stable growth economy is 20% the probability of a stagnant economy is 53%, and the probability of a recession is 12%. Calculate the variance and the standard deviation of the three investments: stock, corporate bond, and government bond. If the estimates for both the probabilities of the economy and the returns in each state of the economy are correct, which investment would you choose, considering both risk and return? Forecasted Returns for Each Economy Stable ent -10% Stock Corporate bond Government bond 25% 9% 8% 13% 7% 6% 4% 5% 3% Hint: Make sure to round all intermediate calculations to at least seven (7) decimal nlaces. The inout instructions. nhrases in narenthesis after each answer hox. onlv annlv for the answers vou will What is the variance of the stock investment? (Round to six decimal places.)What is the standard deviation of the stock investment ?

What is the variance of the corporate bond?

What is the standard deviation of the corporate bond?

What is the variance of the government bond?

What is the standard deviation of the government bond?

Which one is the best investment choice?

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