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Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. Assume that all three states are
Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. Assume that all three states are equally likely. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
State of Economy: Security return if state occurs: Recession 8.00 % Normal 14.00 Boom 24.00
What is?
Expected return:
Standard Deviation:
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