You have the following stock with expected returns given the different economic outcomes. What is the overall standard deviation of returns? Economic state Recession Normal Boom Probability 25% 50% 25% Return -5% 8% 25%

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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You have the following stock with expected returns given the different
economic outcomes. What is the overall standard deviation of returns?
Probability
Economic state
Recession
Normal
Boom
25%
I
50%
25%
Return
-5%
8%
25%
Transcribed Image Text:You have the following stock with expected returns given the different economic outcomes. What is the overall standard deviation of returns? Probability Economic state Recession Normal Boom 25% I 50% 25% Return -5% 8% 25%
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