The Rate of Return on the Shares of Flowers by Flo

question 53

Multiple Choice

The rate of return on the shares 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 shares of Flowers by Flo?

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

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Definitions:

American Women

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Theory of Planned Behavior

A psychological theory that links beliefs and behavior, suggesting that a person's behavior is determined by their intention to perform the behavior and that this intention is influenced by their attitude, subjective norms, and perceived control over the behavior.

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Predictive Value

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