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In a booming economy, a firm s stock is expected to return 1 7 . 7 percent. It is expected to return 8 . 2

In a booming economy, a firms stock is expected to return 17.7 percent. It is expected to return 8.2 percent in a normal economy and will decline 5 percent in a recessionary economy. The probability of a recession is 8 percent while the probability of a boom is 19 percent. What is the standard deviation of the returns on this stock?
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10.52%
5.53%
5.87%
30.53%
17.88%

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