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Business, 17.03.2020 02:21 jocko1224

The common stock of The DownTowne should return 23 percent in a boom, 16 percent in a normal economy, and lose 32 percent in a recession. The probabilities of a boom, normal economy, and recession are 5 percent, 90 percent, and 5 percent, respectively. What is the variance of the returns on this stock?

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The common stock of The DownTowne should return 23 percent in a boom, 16 percent in a normal economy...
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