You Have Given the Following Forecasts for the Economy and Stock

Multiple Choice

You have given the following forecasts for the economy and Stock A: (1) the probability of having a recession next year is 30.0%, a normal economy is 55.0%, and an expansion is 15.0%, and (2) the price of Stock A will be $9 if the economy is in recession, $15 if the economy is normal, and $18 if the economy is in expansion.What is the ex ante standard deviation of Stock A's returns if it is currently selling for $12?

A) 7.1719%
B) 26.7804%
C) 29.4219%
D) 54.2419%