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After some study of the economy, your forecast for next year is that a boom economy has a 30% chance of occurring, a neutral economy

After some study of the economy, your forecast for next year is that a boom economy has a 30% chance of occurring, a neutral economy 50%, and a bust economy a 20% chance of occurring. You also estimate that a certain stock would have a return of 32% in a boom economy next year, 17% in a neutral economy , and -14% in a bust economy. The risk-free rate is 4.6%. What is the standard deviation of expected returns for this stock next year? (Answer to the nearest tenth of a percent, but do not use a percent sign).

Probability Return
Boom Economy 30% 32%
Neutral Economy 50% 17%
Bust Economy 20% -14%

Risk-Free Rate= 4.6%

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