Question: You believe that next year there is a 30% probability of a recession and 70% probability that the economy will be normal. If your stock

 You believe that next year there is a 30% probability of

You believe that next year there is a 30% probability of a recession and 70% probability that the economy will be normal. If your stock will yield -10in a recession and 20% in a normal year, what is the standard deviation of the stock? 12.25% 13.75% 13.50% 1425

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