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A stock will have a loss of 10.6 percent in a bad economy, a return of 10.4 percent in a normal economy, and a return

A stock will have a loss of 10.6 percent in a bad economy, a return of 10.4 percent in a normal economy, and a return of 24.3 percent in a hot economy. There is 28 percent probability of a bad economy, 41 percent probability of a normal economy, and 31 percent probability of a hot economy. What is the variance of the stock's returns?

Multiple Choice

  • .01357

  • .13450

  • .01809

  • .02714

  • .03618

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