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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