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The returns on the common stock of a particular company are quite cyclical. In a boom economy, the stock is expected to return 32% in
The returns on the common stock of a particular company are quite cyclical. In a boom economy, the stock is expected to return 32% in comparison to 14% in a normal economy and -28% in a recession. The probability of a recession is 25%, the probability of a boom is 20%, and the probability of a normal economy is 55%. What is the standard deviation of the returns on this stock? O 11.87% O 21.4% O 21.85% O 22.49% O 26.56%
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