Question

Suppose there are two potential states of the economy for next year: boom and bust, with...

Suppose there are two potential states of the economy for next year: boom and bust, with equal probability to occur. The return of Stock B will be 18% in a boom state and -6% in a bust state. Find out the standard deviation of Stock B. Group of answer choices

6%

12%

18%

14.4%

-6%

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