Question
RTF stock is expected to return 13 percent in a normal economy and lose 8 percent in a recession. The probability of a recession is
RTF stock is expected to return 13 percent in a normal economy and lose 8 percent in a recession. The probability of a recession is 25 percent. What is the variance of the returns on RTF stock?
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International Financial Management
Authors: Geert Bekaert, Robert Hodrick
3rd edition
1107111820, 110711182X, 978-1107111820
