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:

Antiarrhythmic

A medication or substance used to treat and prevent abnormal heart rhythms (arrhythmias).

Official Name

The formal or legally recognized name given to an entity, organization, place, or individual.

Generic Name

A drug’s official name.

Debit Postings

Accounting entries that increase an asset or expense account, or decrease equity, liability, or revenue accounts.