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A stock will have a loss of 14.50% in a bad economy, a return of 9.23% in a normal economy, and a return of 32.98%
A stock will have a loss of 14.50% in a bad economy, a return of 9.23% in a normal economy, and a return of 32.98% in a hot economy. There is a 20% probability of a bad economy, a 50% probability of a normal economy and a 30% probability of a hot economy. What is the standard deviation of the stock's returns?
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