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Given the following information, what is the variance of the returns on this stock? State of Economy Probability of State Rate of Return Boom 28%
Given the following information, what is the variance of the returns on this stock?
| State of Economy | Probability of State | Rate of Return |
|---|---|---|
| Boom | 28% | 25% |
| Normal | 57% | 16% |
| Recession | 15% | -43% |
Variance =
(list your answer as a decimal)
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Introduction To Finance Markets Investments And Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
14th Edition
0470561076, 9780470561072
