The performance of the common stock of Creekside Stores is highly dependent upon the state of the economy. In a boom economy, the stock is expected to return 24% in comparison to 11% in a
Normal economy and a negative 18% in a recessionary period. The probability of a recession is 10%.
There is a 20% chance of a boom economy. The remainder of the time the economy will be at
Normal levels. What is the standard deviation of the returns on Creekside stock?
A) 10.68%
B) 10.85%
C) 11.13%
D) 11.22%
E) 11.28%

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The Answer of The performance of the common stock of Creekside Stores is highly dependent upon the state of the economy. In a boom economy, the stock is expected to return 24% in comparison to 11% in a
Normal economy and a negative 18% in a recessionary period. The probability of a recession is 10%.
There is a 20% chance of a boom economy. The remainder of the time the economy will be at
Normal levels. What is the standard deviation of the returns on Creekside stock?
A) 10.68%
B) 10.85%
C) 11.13%
D) 11.22%
E) 11.28%

The Performance of the Common Stock of Creekside Stores Is