Answer Happy

Financial analysts have estimated the returns on shares of theGoldday Corporation and the overall market portfolio under twoeconomic states nature as follows. For Goldday the state dependentreturns are -0.02 in recession, and 0.10 in an economic boom. Forthe market the state dependent returns are -0.08 in recession,and0.14 in boom. The analyst estimates that the probability of arecession is 0.50 while the probability of an economic boom is0.50. Compute the standard deviation of the market.
* State your answer in decimal form, working your analysis usingat least four decimal places of accuracy.