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5. If the economy flourishes, Cheng's Plumbing stock is expected to return 22%. If the economy falls into a recession, the stock's return is projected

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5. If the economy flourishes, Cheng's Plumbing stock is expected to return 22%. If the economy falls into a recession, the stock's return is projected at 5%. The probability of a boom is 75% while the probability of a recession is 15%. What is the variance of the returns on this stock? ( 10 marks)

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