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You've estimated the following expected returns for a stock, depending on the strength of the economy: State Probability Expected return Recession 0.1 -0.01 Normal 0.5

You've estimated the following expected returns for a stock, depending on the strength of the economy:

State Probability Expected return

Recession 0.1 -0.01

Normal 0.5 0.1

Expansion 0.4 0.15

What is the standard deviation of returns for the stock?

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