An Investor Has Purchased a Mining Stock

Multiple Choice

An investor has purchased a mining stock. It is expected that during a good economy, the stock will provide an 8% return, while in a poor economy the stock will provide a 20% return. The probability of a poor economy is expected to be 30%. Given this information, calculate the standard deviation for this stock.

A) 9.1%
B) 8.2%
C) 7.3%
D) 6.4%
E) 5.5%