Question: You have been given this probability distribution for return for Cheese, Inc. stock: State of Economy Probability Return Boom 0.20 20% Normal 0.45 14% Recession

You have been given this probability distribution for return for Cheese, Inc. stock: State of Economy Probability Return Boom 0.20 20% Normal 0.45 14% Recession 0.35 6% Assuming that the expected return on Cheese's stock is 12.4%, what is the standard deviation of these returns? 5.74% 5.20% 6.12% 6.46%
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