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Based on the following information, what is the standard deviation of returns? State of Economy Probability of State of Economy Rate of Return if State

Based on the following information, what is the standard deviation of returns?

State of Economy Probability of State of Economy Rate of Return if State Occurs
Recession .22 .090
Normal .47 .105
Boom .31 .215

Multiple Choice

  • 12.04%

  • 16.05%

  • 17.51%

  • 10.97%

  • 13.51%

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