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What is Stock XYZs standard deviation of returns? State of the Economy Probability Recession 2096 Below Average 4596 Average
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Answer #1

Expected Return of Stock's XYZ =20%*-10%+45%*15%+35%*22% =12.45%
Standard Deviation =(20%*(-10%-12.45%)^2+45%*(15%-12.45%)^2+35%*(22%-12.45%)^2)^0.5 =11.65%
Option a is correct option

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