Question 4

0 out of 2 points

Stock A has the following returns for various states of the economy:

State of the Economy

Probability

Stock A's Return

Recession

10%

-90%

Below Average

15%

-10%

Average

50%

15%

Above Average

15%

30%

Boom

10%

80%

The volatility or standard deviation of stock A's returns is closest to

Selected Answer: 20%.

Answers:

20%.

23%.

40%.

37%.