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7. (5 Points) Given the following information, what is the variance of the returns on this stock? The economy has three stages: Boom, Normal, and

7. (5 Points) Given the following information, what is the variance of the returns on this stock? The economy has three stages: Boom, Normal, and Recession. The probabilities of each state of the economy are as follows: 0.18, 0.77, and 0.05 respectively. The rates of return are 0.29, 0.14, and -0.45 respectively

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