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Consider the following information on two stocks: State Stock A Stock B Prob(State) 20% 0.25 0.02 Boom Normal 40% 0.11 0.15 Bust 40% -0.09 0.04

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Consider the following information on two stocks: State Stock A Stock B Prob(State) 20% 0.25 0.02 Boom Normal 40% 0.11 0.15 Bust 40% -0.09 0.04 Calculate the variance of stock B. (Enter percentages as decimals and round to 4 decimals)

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