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:

Gene Mutations

Alterations in the DNA sequence of a gene, which can lead to changes in the protein product and potentially affect the individual's trait or health.

Skin Cancers

Cancers that arise from the skin due to the uncontrolled growth of abnormal skin cells, often resulting from prolonged exposure to ultraviolet radiation.

Species Decline

The decrease in numbers or genetic diversity of a species, often leading to its potential extinction.

Ecological Restoration

The practice of renewing and restoring degraded, damaged, or destroyed ecosystems and habitats in the environment by active human intervention and action.