Kali's Ski Resort Stock Is Quite Cyclical

Multiple Choice

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

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