The probability of a normal economy is 74 percent while the


During a normal economy, the common stock of D&F Oil is expected to return 13.2 percent. During a recession, the expected return is 6.7 percent and during a boom, the expected return is 24.5 percent. The probability of a normal economy is 74 percent while the probability of a recession is 15 percent and the probability of a boom is 11 percent. What is the standard deviation of these expected returns?

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Finance Basics: The probability of a normal economy is 74 percent while the
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