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Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession 0.20 0.04
Consider the following information: |
Rate of Return if State Occurs | |||
State of Economy | Probability of State of Economy | Stock A | Stock B |
Recession | 0.20 | 0.04 | -0.19 |
Normal | 0.60 | 0.09 | 0.15 |
Boom | 0.20 | 0.14 | 0.34 |
Required: |
Given that the expected return for Stock B is 12.000%, calculate the standard deviation for Stock B. (Do not round your intermediate calculations.) |
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