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Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. Assuming that all three states are
Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. Assuming that all three states are equally likely. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
State of Economy | Security Return If State Occurs | |
Recession | 8.5 | % |
Normal | 15 | |
Boom | 25 |
Standard deviation | % |
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