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You have given the following forecasts for the economy and Stock A: (1) the probability...

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Finance

You have given the following forecasts for the economy and Stock A: (1) the probability of having a recession next year is 30 percent, a normal economy is 55 percent, and an expansion is 15 percent, and (2) the price of Stock A will be $9 if the economy is in recession, $15 if the economy is normal, and $18 if the economy is in expansion. What is the ex ante standard deviation of Stock As returns if it is currently selling for $12?

PLEASE PROVIDE STEPS a) 7.1719% b) 26.7804% c) 29.4219% d) 54.2419%

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