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2. Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. (Do not round intermediate calculations.

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2. Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Probability of Security Return State of Economy State of . Economy If State Occurs Recession 0.40 5.50% Normal 0.40 11.00 Boom 0.20 17.00

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