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Pierce's stock should return 17 percent in a boom, 9 percent in a normal economy, and O percent in a recession. The probabilities of a
Pierce's stock should return 17 percent in a boom, 9 percent in a normal economy, and O percent in a recession. The probabilities of a boom, normal economy, and recession are 4 percent, 90 percent, and 6 percent, respectively. What is the variance of the returns on this stock? 0.0111 .1206 0 0169 C .0658 .0737
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