Demand for the Companys Products Probability of This Demand Occurring Rate of Return if This Demand Occurs

Weak 0.1 -30%

Below average 0.1 -14%

Average 0.3 11%

Above average 0.3 20%

Strong 0.2 45%

1.0

The stocks expected return is 13.90%; what is the standard deviation?

a) 17.54%

b) 21.86%

c) 23.71%

d) 26.93%

e) 28.19%