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Question 10. What is the variance of the expected returns on this stock? State of the Economy Probability E ( R ) Boom .25 15

Question 10. What is the variance of the expected returns on this stock?

State of the Economy Probability E(R)
Boom .25 15 %
Normal .75 8 %

Multiple Choice

  • 5.25

  • 5.79

  • 6.25

  • 9.19

  • 10.50

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