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What is the standard deviation of the returns on a stock given the following information? state of the economy probability rate of Return Boom 10%
What is the standard deviation of the returns on a stock given the following information?
state of the economy | probability | rate of Return |
Boom | 10% | 16% |
Normal | 60% | 11% |
Recession | 30% | -8% |
5.80%
7.34%
8.38%
9.15%
9.87%
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