Blue Jay Technology is predicting the following scenarios and potential returns for their stock. What is the expected standard deviation of the stock?

State of the Economy$$Probability of State Occurring$$ Expected Return $(\%)$

Recession$0\mathrm{.}3-8\mathrm{.}0\%$

Normal$0\mathrm{.}510\mathrm{.}0\%$

Boom$0\mathrm{.}220\mathrm{.}5\%$

Question $7$Answer

a$.$

$10\mathrm{.}41\%$

b$.$

$6\mathrm{.}70\%$

c$.$

$14\mathrm{.}41\%$

d$.$

$2\mathrm{.}64\%$

e$.$

$7\mathrm{.}50\%$