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MC algo 13-12 Calculating Variance If the economy booms, RTF, Incorporated, stock is expected to return 10 percent. If the economy goes into a recessionary

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MC algo 13-12 Calculating Variance If the economy booms, RTF, Incorporated, stock is expected to return 10 percent. If the economy goes into a recessionary period, then RTF is expected to only return 2 percent. The probability of a boom is 66 percent while the probability of a recession is 34 percent. What is the variance of the returns on RTF, Incorporated, stock? Multiple Choice O .001436 .000948 .037897 O .000460 .036400

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