With normal growth the stock will generate a 107 return and


Ex-Ante Standard Deviation An analyst estimates a 22% probability of a recession next year, a 46% probability of normal economic growth and a 32% probability of a strong recovery. If a recession occurs a stock is projected to have a -15.7% return. With normal growth the stock will generate a 10.7% return and if the strong recovery occurs the stock will have a 25.7% rate of return. This stock's standard deviation is _______. 11.93%

11.93%

12.20%

14.98%

9.69%

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Financial Management: With normal growth the stock will generate a 107 return and
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