8 You recently purchased a stock that is expected to earn 15 percent in a booming...

Transcribed Image Text:

8 You recently purchased a stock that is expected to earn 15 percent in a booming economy, percent in a normal economy, and lose 6 percent in a recessionary economy. There is 20 percent probability of a boom, 50 percent chance of a normal economy, and 30 percent chance of a recession. What is the standard deviation of returns on this stock? 7.11% 5.35% 14.12% 11.88% O 7.79% 8 You recently purchased a stock that is expected to earn 15 percent in a booming economy, percent in a normal economy, and lose 6 percent in a recessionary economy. There is 20 percent probability of a boom, 50 percent chance of a normal economy, and 30 percent chance of a recession. What is the standard deviation of returns on this stock? 7.11% 5.35% 14.12% 11.88% O 7.79%