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Bacon and Associates, a famous Northwest think tank, has provided probability estimates for the four potential economic states for the coming year. The probability of

Bacon and Associates, a famous Northwest think tank, has provided probability estimates for the four potential economic states for the coming year. The probability of a boom economy is 15%, the probability of a stable growth economy is 35%, the probability of a stagnant economy is 35%, and the probability of a recession is 15%. The following returns are expected:
Boom: 20% Stable Growth: 10%
Stagnant Economy: 5%. Recession: -10%
What is the standard deviation for the stock market?

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