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If the economy booms, Meyer&Co. stock will have a return of 18.6 percent. If the economy goes into a recession, the stock will have a
If the economy booms, Meyer&Co. stock will have a return of 18.6 percent. If the economy goes into a recession, the stock will have a loss of 7.7 percent. The probability of a boom is 70 percent while the probability of a recession is 30 percent. What is the standard deviation of the returns on the stock?
8.51%
7.36%
9.16%
12.05%
9.16%
7.80%
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