KNF stock is quite cyclical. In a boom economy, the stock is expected to return 30 percent in comparison to 12 percent in a normal economy and a negative 17 percent in a recessionary period. The probability of a recession is 25%. There is a 15% chance of a boom economy. What is the standard deviation of the returns this stock?

Multiple Choice

• 10.15%

• 12.60%

• 15.43%

• 17.46%

• 25.04%