What Is the Variance of the Expected Returns on This

question 29

Multiple Choice

What is the variance of the expected returns on this stock?
$\begin{array}{lcr}\text { State of the Economy } & \text { Probability } & E(R) \\\text { Boom } & .35 & 18 \% \\\text { Recession } & .65 & 8\%\end{array}$

• A)18.75%
• B)22.75%
• C)31.53%
• D)48.97%
• E)50.03%

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Definitions:

Laughing

The act or an instance of reacting to something funny or amusing by making spontaneous sounds and movements of the face and body.

Touching

Pertaining to physical contact perceived through the sense of touch, often conveying warmth, comfort, or emotional communication.

Extinction

In psychology, the gradual weakening and eventual disappearance of a conditioned response; in biology, the dying out of a species.

Vocalizations

The sounds produced by the vocal cords, including speech, cries, or other vocal output.