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Calculate the standard deviation of returns for Stock A and Stock B. State of Economy: (Recession...

Calculate the standard deviation of returns for Stock A and Stock B.

State of Economy: (Recession 20%) (Normal 55%) (Boom 25%)

Stock A Return: (Recession 5%) (Normal 8%) (Boom 13%)

Stock B Return: (Recession -17%) (Normal 12%) (Boom 29%)

Possible Answers:

a. 23.26%

b. 15.43%

c. 14.94%

d. 4.04%

e. 2.76%

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