Multiple Choice
KNF 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 17 percent in a recessionary period.The probability of a recession is 25%.There is a 15% chance of a boom economy.What is the standard deviation of the returns this stock?
A) 10.15%
B) 12.60%
C) 15.43%
D) 17.46%
E) 25.04%
Correct Answer:
Verified
Correct Answer:
Verified
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