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What Is the Variance of the Expected Returns on This

Question 34

Multiple Choice

What is the variance of the expected returns on this stock?
 State of the Economy  Probability E(R)  Boom .2515% Normal .758%\begin{array}{lcr}\text { State of the Economy } & \text { Probability } & E(R) \\\text { Boom } & .25 & 15 \% \\\text { Normal } & .75 & 8 \%\end{array}


A) 5.25
B) 5.79
C) 6.25
D) 9.19
E) 10.50

Correct Answer:

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