Question: State Probability return on A Return on B boom .3 12% -2% normal .6 8% 2% bust .1 4% 6% What is the standard deviation

State Probability return on A Return on B
boom .3 12% -2%
normal .6 8% 2%
bust .1 4% 6%

What is the standard deviation of returns for asset A?

  • 1.3%

  • 6.4%

  • 1.9%

  • 2.5%

  • 2.4%

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