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As in the previous problem, the returns on the common stock of Anaheim Sporting Goods are quite cyclical. In a normal economy, the stock is

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As in the previous problem, the returns on the common stock of Anaheim Sporting Goods are quite cyclical. In a normal economy, the stock is expected to return 14 percent in comparison to 28 percent in a boom economy and a negative 20 percent in a recessionary period. The probabllity of a recession is 20 percent while the probability of a boom is 30 percent. What is the standard deviation of the returns on this stock? 18.20% 19.47% 14.93% 17.20% 16.83%

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