Question: A stock has return characteristics as in the table. What is the stock's expected volatility (standard deviation of returns)? States Boom Probability 60% 40% Return

A stock has return characteristics as in the table. What is

A stock has return characteristics as in the table. What is the stock's expected volatility (standard deviation of returns)? States Boom Probability 60% 40% Return 10% Bust -5% 15% 7.35% 5.68% 10.25%

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