The Rate of Return on the Common Stock of Flowers

question 3

Multiple Choice

The rate of return on the common stock of Flowers by Flo is expected to be 14% in a boom economy,8% in a normal economy,and only 2% in a recessionary economy. The probabilities of these economic states are 20% for a boom,70% for a normal economy,and 10% for a recession. What is the variance of the returns on the common stock of Flowers by Flo?

• A) .001044
• B) .001280
• C) .001863
• D) .002001
• E) .002471

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Definitions:

Water

Water is a colorless, tasteless, and odorless substance essential for life, making up a significant portion of the Earth's surface and the human body.

NADH

Nicotinamide adenine dinucleotide (reduced form), a coenzyme involved in redox reactions, carrying electrons from one reaction to another in cellular respiration.

Electron Transport Chain

A series of complexes that transfer electrons from electron donors to electron acceptors via redox reactions, and couples this electron transfer with the transfer of protons (H+ ions) across a membrane.

ATPs

A molecule known as ATP, which serves as an energy carrier within cells to fulfill metabolic needs.