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Calculate the expected standard deviation on stock: State of the economy Probability of the states Percentage returns Economic recession 18% -4% Steady economic growth 23% 8% Boom Please calculate it 18%
Calculate the expected standard deviation on stock:
State of the economy Probability of the states Percentage returns
Economic recession 18% -4%
Steady economic growth 23% 8%
Boom Please calculate it 18%
Expert Solution
Hence, the expected standard deviation = 8.42%
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