The returns on the common stock of a particular company are, Ask an Expert

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The returns on the common stock of a particular company are quite cyclical. In a boom economy, the stock is expected to return 32% in comparison to 14% in a normal economy and a negative 28% in a recessionary period. The probability of a recession is 25% while the probability of a boom is 20%. What is the standard deviation of the returns on this stock?

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Financial Management, Finance

Category:- Financial Management
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