Blue Bell stock is expected to return 8.4 percent in a boom, 8.9 percent in a normal economy, and 9.2 percent in a recession.The probabilities of a boom, normal economy, and a recession are 6 percent, 92 percent, and 2 percent, respectively.What is the standard deviation of the returns on this stock?
A) .38 percent
B) .55 percent
C) .13 percent
D) .42 percent
E) .06 percent
Correct Answer:
Verified
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