What is the standard deviation of the returns this stock

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XYZ stock is quite cyclical. In a boom economy, the stock is expected to return 30 percent in comparison to 18 percent in a normal economy and a negative 15 percent in a recessionary period. The probability of a recession is 25%. There is a 30% chance of a boom economy. What is the standard deviation of the returns this stock?

Reference no: EM131514954

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