What is the standard deviation of the returns on a stock given the following information? $$\begin{array} { l c c }
\begin{array} { l }
\text { State of } \
\underline{\text { Economy }}
\end{array} & \begin{array} { l }
\text { Probability of } \
\underline{\text { State of Economy} }
\end{array} & \begin{array} { c }
\text { Rate of Return } \
\underline{\text { if State Occurs }}
\end{array} \
\text { Boom } & 10 \% & 16 \% \
\text { Normal } & 60 \% & 11 \% \
\text { Recession } & 30 \% & \mathbf { - 8 } \%
\end{array}$$
A)5.80%
B)7.34%
C)8.38%
D)9.15%
E)9.87%

Question

What is the standard deviation of the returns on a stock given the following information? $$\begin{array} { l c c } 
\begin{array} { l } 
\text { State of } \
\underline{\text { Economy }}
\end{array} & \begin{array} { l } 
\text { Probability of } \
\underline{\text { State of Economy} }
\end{array} & \begin{array} { c } 
\text { Rate of Return } \
\underline{\text { if State Occurs }}
\end{array} \
 \text { Boom } & 10 \% & 16 \% \
\text { Normal } & 60 \% & 11 \% \
\text { Recession } & 30 \% & \mathbf { - 8 } \%
\end{array}$$
A)5.80%
B)7.34%
C)8.38%
D)9.15%
E)9.87%

Quizplus · Accepted Answer

The Answer of What is the standard deviation of the returns on a stock given the following information? $$\begin{array} { l c c } 
\begin{array} { l } 
\text { State of } \
\underline{\text { Economy }}
\end{array} & \begin{array} { l } 
\text { Probability of } \
\underline{\text { State of Economy} }
\end{array} & \begin{array} { c } 
\text { Rate of Return } \
\underline{\text { if State Occurs }}
\end{array} \
 \text { Boom } & 10 \% & 16 \% \
\text { Normal } & 60 \% & 11 \% \
\text { Recession } & 30 \% & \mathbf { - 8 } \%
\end{array}$$
A)5.80%
B)7.34%
C)8.38%
D)9.15%
E)9.87%

What Is the Standard Deviation of the Returns on a Stock