What Is the Variance of the Expected Returns on This

question 34

Multiple Choice

What is the variance of the expected returns on this stock?
$\begin{array}{lcr}\text { State of the Economy } & \text { Probability } & E(R) \\\text { Boom } & .25 & 15 \% \\\text { Normal } & .75 & 8 \%\end{array}$

• A)5.25
• B)5.79
• C)6.25
• D)9.19
• E)10.50

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Definitions:

Dimensional Approach

A method in psychology that quantifies a person's symptoms or behaviors along a continuum rather than categorizing them into binary states.

Personality Disorders

A group of mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts.

Categorical

Relating to or involving categories, especially as opposed to continuous measurement or gradations; often used in reference to classification systems.

Psychodynamic View

A perspective in psychology that emphasizes the influence of the unconscious mind on behavior, stemming from Freudian theory.