What Is the Standard Deviation of the Returns on a Share

question 1

Multiple Choice

What is the standard deviation of the returns on a share given the following information?
$\begin{array}{|l|l|l|}\hline \text { State of Economy } & \text { Probability of State of Economy } & \text { Rate of Return if StateOccurs } \\\hline \text { Boom } & 10 \% & 16 \% \\\hline \text { Normal } & 60 \% & 11 \% \\\hline \text { Recession } & 30 \% & -8 \% \\\hline\end{array}$

• A)5.80%
• B)7.34%
• C)8.38%
• D)9.15%
• E)9.87%

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