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You've estimated the following expected returns for a stock, depending on the strength of the economy: State (s) Probability Expected return Recession 0.3 -0.04 Normal

You've estimated the following expected returns for a stock, depending on the strength of the economy: State (s) Probability Expected return

Recession 0.3 -0.04

Normal 0.5. 0.07

Expansion 0.2 0.12

What is the standard deviation of returns for the stock?

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