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?
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1.3%
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6.4%
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1.9%
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2.5%
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2.4%
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