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f the economy is normal, a firm s stock is expected to return 9 . 1 percent. If the economy falls into a recession, the

f the economy is normal, a firms stock is expected to return 9.1 percent. If the economy falls into a recession, the stock's return is projected at a negative 4.3 percent. The probability of a normal economy is 75 percent. What is the variance of the returns on this stock?
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.001263
.006673
.004489
.003367
.020493

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