Calculate the standard deviation of returns

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Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone.

State of Economy

Probability of State of the Economy

Security Return if State Occurs

Recession

.30

-8%

Normal

.40

13

Boom

.30

23

Using the information in the previous question, calculate the standard deviation of returns.

Reference no: EM13999045

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