Question
Consider the following information on two stocks: P(State) Stock A Stock B Boom 20% 30% 25% Normal 30% 15% -5% Slow 40% -5% 5% Bust
Consider the following information on two stocks:
P(State) | Stock A | Stock B | |
Boom | 20% | 30% | 25% |
Normal | 30% | 15% | -5% |
Slow | 40% | -5% | 5% |
Bust | 10% | -12% | 0% |
Calculate the variance of stock A. (Enter percentages as decimals and round to 4 decimals)
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