Kurt's Adventures SA Equity Is Quite Cyclical

Multiple Choice

Kurt's Adventures SA equity is quite cyclical.In a boom economy,the equity 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 Kurt's Adventures SA?

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