The returns on the common stock of New Image Products are quite cyclical. In a boom economy, the stock is expected to return 23 percent in comparison to 14 percent in a normal economy and a negative 18 percent in a recessionary period. 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 this stock?

Multiple Choice

A) 11.56 percent

B) 13.71 percent

C) 15.83 percent

D) 14.77 percent

E) 12.08 percent