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A Company Will Earn 10% Returns in a Poor Economy,15

Question 5

Multiple Choice

A company will earn 10% returns in a poor economy,15% returns in a normal economy,and 25% returns in a booming economy.What is the standard deviation if there is a 25% chance of a poor economy and a 25% chance of a booming economy?


A) 10.83%
B) 5.45%
C) 6.12%
D) 11.18%
E) 4.91%

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