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Two stocks, 3 states of the world Correct answer 1.69% State 1 State 3 State 3 Probability 0.25 0.25 0.5 Stock A returns 10% 20%

Two stocks, 3 states of the world

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Correct answer 1.69%

State 1 State 3 State 3 Probability 0.25 0.25 0.5 Stock A returns 10% 20% -10% Stock B returns 15% 5% 5% What's the variance of stock A

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