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:

Tripod Alternating Position

A physical position or maneuver often used in rehabilitation and physical therapy to help improve balance and stability.

Full Leg Cast

A type of orthopedic cast that encases the entire leg from the thigh to the foot, used to immobilize the leg to heal bones or injuries.

Body Mechanics

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Wide Base of Support

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