# What is the standard deviation of the returns on a stock given the following information? State of Economy

What is the standard deviation of the returns on a stock given the following information? State of Economy Probability of State of Economy Rate of Return if State Occurs Boom .28 .175 Normal .67 .128 Recession .05 .026

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month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 =$3328.23 it will take 3 months to pay a total of \$3328.23

3. Expert says:

The answer is b i think