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What is the standard deviation on return for a stock that has the following probability distribution: state of the economy probability return (%) boom 0.30
What is the standard deviation on return for a stock that has the following probability distribution:
state of the economy | probability | return (%) |
boom | 0.30 | 18 |
normal growth | 0.50 | 12 |
recession | 0.20 | -5 |
A) 8.13% B) 9.96% C) 7.04% D) 1.44%
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