What Is the Variance of the Returns on a Security

question 13

Multiple Choice

What is the variance of the returns on a security given the following information?
$\begin{array}{lcc}\text { State of the Economy } & \text { Probability of } & \text { Rate of Return if } \\& \text { State of Economy } & \text { state occurs }\\\text { Boom } & .05 & 27 \% \\\text { Normal } & .30 & 15 \% \\\text { Recession } & .65 & -22 \%\end{array}$

• A)239.77%
• B)284.05%
• C)321.16%
• D)347.15%
• E)362.98%

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Definitions:

Operating Agreement

A legal document outlining the governance and business operations of an LLC, agreed upon by its members.

LLC Statue

Probably intended to be "LLC Statute," which refers to the laws that govern the formation, operation, and dissolution of Limited Liability Companies.

Dispute Resolution

The process of resolving disagreements or conflicts between parties through negotiations, mediations, arbitrations, or legal proceedings.

Personal Liability

The legal responsibility of an individual to settle debts or legal claims using personal assets.