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If the economy booms, RTF, Inc. stock is expected to return 13 percent. If the economy goes into a recessionary period, then RTF is expected
If the economy booms, RTF, Inc. stock is expected to return 13 percent. If the economy goes into a recessionary period, then RTF is expected to only return 5 percent. The probability of a boom is 83 percent while the probability of a recession is 17 percent. What is the variance of the returns on RTF, Inc. stock?
.000750
.000903
.000596
.030051
.058200
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