Multiple Choice
RTF stock is expected to return 11 percent in a normal economy and lose 15 percent in a recession.The probability of a recession is 33 percent and the probability of a booming economy is zero.What is the variance of the returns on RTF stock?
A) 0) 019093
B) 0) 013760
C) 0) 017864
D) 0) 014946
E) 0) 019394
Correct Answer:
Verified
Correct Answer:
Verified
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