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4. If the economy is normal, Charleston Freight stock is expected to return 14.3 percent. If the economy falls into a recession, the stock's return

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4. If the economy is normal, Charleston Freight stock is expected to return 14.3 percent. If the economy falls into a recession, the stock's return is projected at a negative 8.7 percent . The probability of a normal economy is 80 percent. What is the variance of the returns on this stock? A) .100346 B) .008464 C) .007420 D) .073927 E) .094315

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