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If the economy booms, RTF , Inc. stock is expected to return 9 % . If the economy goes into a recessionary period, then RTF

If the economy booms, RTF

,

Inc. stock is expected to return

9 % .

If the economy goes into a recessionary period, then RTF is expected to only return

4 % .

The probability of a boom is

68 %

while the probability of a recession is

38 % .

What is the variance of the returns on RTF

,

Inc. stock?

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