State of the Economy Probability of the States Percentage Returns Economic recession 25% 5% Moderate economic growth 50% 10% Strong economic growth 25% 13% The standard deviation from investing in the asset is:

The standard deviation from investing in the asset is 14.40%.

Explanation:

Note: The data in the question are first sorted before answering the question as follows:

State of the Economy       Probability of the States    Percentage Returns

Economic recession                        25%                                    5%

Moderate economic growth           50%                                    10%

Strong economic growth                25%                                    13%

The standard deviation from investing in the asset is:

The explanation of the answer is now given as follows:

Note: See the attached excel file for the calculation of Variance from investing in the asset.

From the attached excel file, we have:

Variance = 2.07%

Therefore, we have:

Standard deviation = Variance^0.5 = 2.07%^0.5 = 14.40%

Therefore, the standard deviation from investing in the asset is 14.40%.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o