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If the economy booms, RTF, Inc. stock is expected to return 11 percent. If the economy goes into a recessionary period, then RTF is expected
If the economy booms, RTF, Inc. stock is expected to return 11 percent. If the economy goes into a recessionary period, then RTF is expected to only return 2 percent. The probability of a boom is 74 percent while the probability of a recession is 26 percent. What is the variance of the returns on RTF, Inc. stock? .001153 .039477 .001558 .000748 .043300
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