Kali's Ski Resort,Inc

Multiple Choice

Kali's Ski Resort,Inc. stock is quite cyclical. In a boom economy,the stock is expected to return 30% in comparison to 12% in a normal economy and a negative 20% in a recessionary period. The probability of a recession is 15%. There is a 30% chance of a boom economy. The remainder of the time,the economy will be at normal levels. What is the standard deviation of the returns on Kali's Ski Resort,Inc. stock?

A) 10.05%
B) 12.60%
C) 15.83%
D) 17.46%
E) 25.04%