George is considering an investment in Vandelay Inc. and has gathered the information in the following table. What is the expected standard deviation for a share of the firm's stock?
|
State of the Economy
|
Probability of the State
|
Conditional Expected Return
Vandelay Inc.
|
|
Recession
|
.25
|
-20%
|
|
Steady
|
.60
|
10%
|
|
Boom
|
.15
|
35
|