What Is the Standard Deviation of a Security That Has

question 19

Multiple Choice

What is the standard deviation of a security that has the following expected returns?
$\begin{array}{lcc}\text { State of the Economy } & \text { Probability of } & \text { Rate of Return if } \\& \text { State of Economy } & \text { state occurs }\\\text { Boom } & .10 & 19 \% \\\text { Normal } & .75& 13 \% \\\text { Recession } & .15 & -7 \%\end{array}$

• A)7.48%
• B)7.61%
• C)7.67%
• D)7.82%
• E)7.91%

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Definitions:

Infundibulum

A funnel-shaped structure, specifically in anatomy can refer to the connection between the hypothalamus and the pituitary gland or the passage in the ovary through which the egg travels.

Corpus Callosum

A thick band of nerve fibers that divides the cerebral cortex lobes into left and right hemispheres, facilitating communication between the two sides of the brain.

Insula

A region of the brain's cerebral cortex, situated deep within the lateral sulcus, involved in consciousness, emotion, and regulating the body's homeostasis.

Intermediate Mass

In the context of the thalamus, it's the part that connects the two lobes of the thalamus at their medial surfaces.