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If the economy is normal, CSUSM stock is expected to return 15 percent. If the economy falls into a recession, the stock's return is projected
If the economy is normal, CSUSM stock is expected to return 15 percent. If the economy falls into a recession, the stock's return is projected at a negative 10 percent. The probability of a normal economy is 70 percent while the probability of a recession is 30 percent. What is the variance of the returns on this stock? Select one: a. 0.013125 O b. 0.012634 O c. 0.014715 O d. 0.012927 e. 0.011346
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