Question $9(6\mathrm{.}7$ points$)$

Common stock of XYZ Corporation stock has the following probability distribution of

returns:

The standard deviation of returns for $xYZ$ Corporation stock is:

$4\mathrm{.}11\%$

$\mathrm{.}0041\%$

$\mathrm{.}0642\%$

$6\mathrm{.}42\%$

$7\mathrm{.}00\%$Common stock of XYZ Corporation stock has the following probability distribution of

returns:

State

Probability

Return

I

Boom

$10\%$

$20\%$

Normal

$60\%$

$8\%$

Bust

$30\%$

$-2\%$

The standard deviation of returns for XYZ Corporation stock is:

$4\mathrm{.}11\%$

$0\mathrm{.}0041\%$

$0\mathrm{.}0642\%$

$6\mathrm{.}42\%$

$7\mathrm{.}00\%$