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Variance of the returns on rtf stock

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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?

  • .009394
  • .008269
  • .009093
  • .007864
  • .008760

Reference no: EM131317741

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