An Investor Has Purchased a Gold Stock

Multiple Choice

An investor has purchased a gold stock. It is expected that during a good economy, the stock will provide a 4% return, while in a poor economy the stock will provide an 18% return. The probability of a good economy is expected to be 40%. Given this information, calculate the standard deviation for this stock.

A) 14.20%
B) 13.30%
C) 6.86%
D) 11.50%
E) 10.60%