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Suppose you are holding a stock and there are three possible outcomes. The good state happens with 20% probability and 18% return. The neutral state
Suppose you are holding a stock and there are three possible outcomes. The good state happens with 20% probability and 18% return. The neutral state happens with 55% probability and 9% return. The bad state happens with 25% probability and -5% return. What is the variance of return?
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