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You believe that next year there is a 25% probability of a recession and 75% probability that the economy will be normal. If your stock

You believe that next year there is a 25% probability of a recession and 75% probability that the economy will be normal. If your stock will yield 7% in a recession and 21% in a normal year, what is the standard deviation of the stock?

The standard deviation of the stock is ________

(Round to two decimal places.)

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