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The common stock of The Dominic Companies should return 29 percent in a boom, 12 percent in a normal economy, and 15 percent in a

The common stock of The Dominic Companies should return 29 percent in a boom, 12 percent in a normal economy, and 15 percent in a recession. The probabilities of a boom, normal economy, and recession are 12 percent, 86 percent, and 2 percent, respectively. What is the variance of the returns on this stock?

  • .005809

  • .005019

  • .006047

  • .004701

  • .006270

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