Question: Based on the following information, the standard deviation for Stock A equals _______ and Stock B ___________: State of Economy Probability of State of Economy

Based on the following information, the standard deviation for Stock A equals _______ and Stock B ___________:

State of Economy

Probability of State of Economy

Rate of Return If State Occurs

Stock A

Stock B

Recession

Normal

Boom

.20

.50

.30

.07

.03

.14

.11

.09

.24

Select one:

A. 7.10%; 12.13%

B. 9.50%; 4.76%

C. 7.10%; 9.50%

D. 0.23%; 1.47%

E. 4.76%; 12.13%

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