Question $2$

$4$ pts

There are two potential states of the economy for next year: boom and bust. The probability of a boom state is $40\%,$ and that of a bust state is $60\%.$

The return of Stock A will be $18\%$ in a boom state, and $-6\%$ in a bust state.

Find the standard deviation of Stock A$.$

$11\mathrm{.}76\%$

$12\%$

$12\mathrm{.}30\%$

$3\mathrm{.}6\%$