Question: An analyst has estimated how a particular stock's return will vary depending on what will happen to the economy. What is the standard deviation? STATE

An analyst has estimated how a particular stock's

An analyst has estimated how a particular stock's return will vary depending on what will happen to the economy. What is the standard deviation? STATE OF THE PROBABILITY OF STOCK'S EXPECTED ECONOMY STATE OCCURRING RATE IF THIS STATE OCCURS Recession .10 (-60) (-10) Below Average 20 Average .40 .15 Above Average 20 .40 Boom .10 .90

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