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Business, 03.04.2020 20:55 chodister353

Given her evaluation of current economic conditions, Ima Nutt believes there is a 20 percent probability of recession, a 50 percent change of continued steady growth, and a 30 percent probability of inflationary growth. For each possibility, Ima has developed an interest rate forecast for long-term Treasury bond interest rates accordingly: 6%, 9% and 14%. What is the standard deviation under Ima’s interest rate forecast? a. 8.49% b. 1.22% c. 9.9% d. 2.91%

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