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Use the following table to compute the standard deviation of return given the following scenario analysis for the stock market of a developing country A.

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Use the following table to compute the standard deviation of return given the following scenario analysis for the stock market of a developing country A. Which choice comes closest to the standard deviation? (Use 3 decimal points in the intermediate steps). A B D E F Scenario Probability Expected B*C Deviation B*Squared Return in from the Deviation each mean scenarios Recession 0.2 -35% Normal 0.7 5% Boom 0.1 17% Average= Variance= Standard Deviation= O 15% O 39% O 36.5% O 8.5%

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