What Is the Standard Deviation of the Returns on a Stock

Multiple Choice

What is the standard deviation of the returns on a stock given the following information? $$\begin{array} { l c c } { \text { State of } } & \text { Probability of } & \text { Rate of Return } \\\text { Econony } & \text { State of Economy } & \text { if State Occurs } \\\text { Boom } & .28 & .175 \\\text { Normal } & .67 & .128 \\\text { Recession } & .05 & .026\end{array}$$

A) 3.57 percent
B) 3.28 percent
C) 3.89 percent
D) 3.42 percent
E) 4.01 percent