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George is considering an investment in Vandelay Inc. and has gathered the information in the following table. What is the expected standard deviation for a
George is considering an investment in Vandelay Inc. and has gathered the information in the following table. What is the expected standard deviation for a share of the firm's stock?
State of the Economy | Probability of the State
| Conditional Expected Return Vandelay Inc.
|
Recession | .25 | -20% |
Steady | .60 | 10% |
Boom | .15 | 35% |
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