The Common Stock of the Dominic Companies Should Return 29

question 39

Multiple Choice

The common stock of The Dominic Companies should return 29 percent in a boom, 12 percent in a normal economy, and -15 percent in a recession.The probabilities of a boom, normal economy, and recession are 12percent, 86 percent, and 2 percent, respectively.What is the variance of the returns on this stock?

• A).005809
• B).005019
• C).006047
• D).004701
• E).006270

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Definitions:

Interactive Computing

Computing systems designed for a two-way interaction between the user and the computer, allowing for real-time communication and feedback.

Sequencing

The process of arranging activities, tasks, or projects in a specific order to optimize outcomes and efficiency, often used in manufacturing, project management, and computer science.

Work Centres

Specific locations within a factory where tasks related to production are completed.

Facility Capacity

The maximum amount of work or production that a facility can handle or produce in a given period.