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Assume that the economy has an 4 0 % chance of booming, a 3 8 % chance of being normal, and being recessionary the remainder

Assume that the economy has an 40% chance of booming, a 38% chance of being normal, and being recessionary the remainder of the time. A stock is expected to return 22.13% in a boom economy, 15.83% in a normal economy, and -15.63% in a recession economy. What is the standard deviation of returns on the stock?

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