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The returns on COSTCO common stock vary with the economy. In a boom economy, the stock is expected to return 26 percent. In a normal
The returns on COSTCO common stock vary with the economy. In a boom economy, the stock is expected to return 26 percent. In a normal economy, the stock is expected to return 16 percent and, in a recession, the stock is expected to return 18 percent. The probability of a recession is 18 percent while the probability of a boom is 22 percent. What is the standard deviation of the returns on COSTCO stock?
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