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What is the standard deviation of the returns on a stock given the following information? State of Economy Probability of State of Economy Rate of
What is the standard deviation of the returns on a stock given the following information?
State of Economy | Probability of State of Economy | Rate of Return if State Occurs |
Boom | .28 | .175 |
Normal | .67 | .128 |
Recession | .05 | .026 |
Group of answer choices
3.42 percent
4.01 percent
3.89 percent
3.28 percent
3.57 percent
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