Information on states of the economy and stock returns

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Reference no: EM13934660

Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

State of Economy Probability of State of Economy Security Return If State Occurs

Recession .40 –6 %

Normal .25 10%

Boom .35 19%

Reference no: EM13934660

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