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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