What Is the Variance of the Expected Returns on This

question 22

Multiple Choice

What is the variance of the expected returns on this stock?
$\begin{array}{lrr}\text { State of the Economy } & \text { Probability of } & \text { Rate of Return if } \\& \text { State of Economy } & \text { state occurs }\\\text { Boom } & .40& 15\% \\\text { Normal } & .60 &19 \%\end{array}$

• A)1.21%
• B)1.42%
• C)1.56%
• D)3.84%
• E)4.03%

---

Definitions:

Knowledge Management

The process of capturing, developing, sharing, and effectively using organizational knowledge.

Knowledge Acquisition

The process of obtaining, absorbing, and storing new knowledge or skills through various means such as studying, training, or direct experiences.

Self-Reinforcement

A cognitive process by which individuals reward or punish themselves for meeting or failing to meet their own standards or goals.

Behavior Modification

The use of reinforcement techniques to change or improve an individual's actions and responses.