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Question 17 (1 point) The rate of return on the common stock of a company is expected to be 13.00% in a boom economy, 8.00%
Question 17 (1 point) The rate of return on the common stock of a company is expected to be 13.00% in a boom economy, 8.00% in a normal economy, and only 2.50% in a recessionary economy. The probabilities of these economic states are 28.0% for a boom, 54.0% for a normal economy, and 18.0% for a recession. What is the variance of the returns on the common stock of the company? 0.001228 0.001258 0.001289 0.001320 0.001350
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