You have been given this probability distribution for the holding-period return for KMP stock:
Stock of the Economy
Probability
HPR
Boom
0.30
18
%
Normal growth
0.50
12
Recession
0.20
–
5
What is the expected standard deviation for KMP stock? A) 6.91% B) 8.13% C) 7.79% D) 7.25% E) 8.85%Please provide justification
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