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If the economy booms, Meyer&Co. stock will have a return of 21.2 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 21.2 percent. If the economy goes into a recession, the stock will have a loss of 13.5 percent. The probability of a boom is 61 percent while the probability of a recession is 39 percent. What is the standard deviation of the returns on the stock?
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