Question 3 1 pts (Ref. Unit 8 Exercise 3) Consider an economy with two future states: (1) recession with an 80% probability and (2) boom with a 20% probability. A stock earns 7% in the recession and 20% in the boom. What is the standard deviation (not variance) of the stock in percentage (%)? Hint: You need first to calculate the expected return on the stock. Note: Write your answer in % terms (do not round). For example, write 2.54 (%) instead of 0.0254.