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RTF Stock Is Expected to Return 13 Percent in a Normal

Question 71

Multiple Choice

RTF stock is expected to return 13 percent in a normal economy and lose 8 percent in a recession.The probability of a recession is 25 percent.What is the variance of the returns on RTF stock?


A) .009093
B) .008760
C) .007864
D) .008269
E) .009394

Correct Answer:

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