Stock W has the following returns for various states of the economy:

Stock W has the following returns for various states of the economy:

State of the Economy Probability Stock W’s Return
Recession 10% -30%
Below Average 20% -2%
Average 40% 10%
Above Average 20% 18%
Boom 10% 40%
Stock W’s standard deviation of returns is
A) 20% B) 14%. C) 17%. D) 10%.

ANSWER

C