Amy and brian were investigating the acquisition of a tax accounting business, bottom line inc. (bli). as part of their discussions with the sole shareholder of the corporation, ernesto young, they examined the company's tax accounting balance sheet. the relevant information is summarized as follows:

The returns on the common stock of maynard cosmetic specialties are quite cyclical. in a boom economy, the stock is expected to return 22 percent in comparison to 9 percent in a normal economy and a negative 14 percent in a recessionary period. the probability of a recession is 35 percent while the probability of a boom is 10 percent. what is the standard deviation of the returns on this stock?