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What is the variance of the returns on a security given the following information? State of the Economy Probability of State of Economy Rate of
What is the variance of the returns on a security given the following information?
| State of the Economy | Probability of State of Economy | Rate of Return if State Occurs | |
| Boom | .20 | 16 | % |
| Normal | .50 | 8 | % |
| Recession | .30 | 8 | % |
Multiple Choice
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79.36%
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83.35%
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87.73%
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89.23%
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90.98%
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Professionals Handbook Of Financial Risk Management
Authors: Lev Borodovsky, Marc Lore
1st Edition
0750641118, 978-0750641111
