AAPL sells for $150 a share today.

Its likely dividends per share and end-of-year stock price depend on the state of the economy by the end of the year as follows:

Scenarios Probabilities Dividends Stock Price

Boom economy 1/4 $4 $200

Normal economy 1/2 $1 $160

Recession 1/4 $0.2 $100

Compute the standard deviation of the holding period return STD(Ri) for AAPL from today to the end of the year.

24.65%

7.09%

17.30%

36.00%