A stock has an expected rate of return of 19.55%. The rate of return for this stock
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Question:
A stock has an expected rate of return of 19.55%. The rate of return for this stock is 18% if the state of the economy is recession, 17% if the state of the economy is normal, and 25% if the state of the economy is expansion. The probability for each state of the economy is 15%, 55%, and 30%, respectively. What is the variance for this stock?
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