KNF Stock Is Quite Cyclical

Multiple Choice

KNF stock is quite cyclical.In a boom economy,the stock is expected to return 34 percent in comparison to 13 percent in a normal economy and a negative 22 percent in a recessionary period.The probability of a recession is 15 percent while the chance of a boom is 4 percent.What is the standard deviation of the returns this stock?

A) 14.15%
B) 13.68/%
C) 13.49%
D) 14.46%
E) 15.04%