Discussion:
Q: Given the following information, what is the standard deviation for this stock?
Probabilities:
Recession:0.3
Normal:0.45
Boom:0.25
Returns:
Recession:12%
Normal:8%
Boom:-16%
1. 11.21 percent
2. 9.85 percent
3. 12.87 percent
4. 10.75 percent
5. 9.22 percent