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The following are your predictions of 4 possible states of the economy and estimated rates of return for Suncoast, Inc. common stock. Given this information,
The following are your predictions of 4 possible states of the economy and estimated rates of return for Suncoast, Inc. common stock. Given this information, what is the stock's standard deviation?
State of economy Probability Return
Recession 20% 8%
Normal Growth 50% 7%
Rapid growth 25% 5%
Crazy growth 5% 9%
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