Question: Problem 11-3 Expected Returns and Deviations (LO1, CFA2) Use the following information on states of the economy and stock returns to calculate the standard deviation

Problem 11-3 Expected Returns and Deviations (LO1, CFA2)

Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. Assume that all three states are equally likely. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

State of Economy Security Return if State Occurs
Recession 7.00 %
Normal 9.00
Boom 21.00

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