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Calculate the standard deviation of returns for Stock A and Stock B. State of Economy: (Recession 20% ) (Normal 55% ) (Boom 25% ) Stock
Calculate the standard deviation of returns for Stock A and Stock B.
State of Economy: (Recession 20%) (Normal 55%) (Boom 25%)
Stock A Return: (Recession 5%) (Normal 8%) (Boom 13%)
Stock B Return: (Recession -17%) (Normal 12%) (Boom 29%)
Possible Answers:
a. 23.26%
b. 15.43%
c. 14.94%
d. 4.04%
e. 2.76%
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