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Calculate the Variance of the Rate of Return, Var(R) ? begin{tabular}{|l|c|c|l|l|l|l|l|l|} hline & Prob of State of the Economy & End-of-Year Selling Price of the
Calculate the Variance of the Rate of Return, Var(R) ?
\begin{tabular}{|l|c|c|l|l|l|l|l|l|} \hline & Prob of State of the Economy & End-of-Year Selling Price of the Stock & Beginning Price of the Stock & Cash Return from your investment & Percentage Rate of Return & Weighted average of rate of return & Difference between the realized rate of return - the everage of the squared difference \\ \hline A return \\ \hline Recession Growth & 0.35 & 7000 & 10000 & & & & \\ \hline Strong Growth & 0.15 & 16000 & 10000 & & & & \\ \hline \end{tabular} E(R)=?Var(R)=Step by Step Solution
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