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Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. (Round your answer to 2 decimal
Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. (Round your answer to 2 decimal places. Omit the "%" sign in your response.) |
State of Economy | Probability of State of Economy | Security Return If State Occurs | ||||||||||
Recession | .40 | -6 | % | |||||||||
Normal | .40 | 10 | ||||||||||
Boom | .20 | 19 | ||||||||||
Standard deviation | % |
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