Question: A stock is expected to return 35% in a boom, 15% In a normal economy, and lose 65% In a recession. The probabilities of a

A stock is expected to return 35% in a boom, 15% In a normal economy, and lose 65% In a recession. The probabilities of a boom, normal economy, and a recession are 5%, 90%, and 5%, respectively. What is the standard deviation of the returns on this stock? Probability 0.05 0.9 0.05 Return 35 15.00 -65 1.75 13.5 -3.25 Std of the returns

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