If the Economy Booms,RTF,Inc

question 58

Multiple Choice

If the economy booms,RTF,Inc. stock is expected to return 10%. If the economy goes into a recessionary period,then RTF is expected to only return 4%. The probability of a boom is 60% while the probability of a recession is 40%. What is the variance of the returns on RTF,Inc. stock?

• A) .000200
• B) .000760
• C) .000864
• D) .001594
• E) .029394

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Definitions:

Carbon Isotopes

Variants of the carbon atom with different numbers of neutrons, useful in studying environmental changes and understanding past climate conditions.

Extinct Whales

Whales that have no living descendants, often studied through fossils to understand the evolution and biodiversity of cetaceans.

Freshwater

Water that contains minimal concentrations of dissolved salts, typically found in rivers, lakes, and streams.

Saltwater

Water that contains a significant concentration of dissolved salts, typically found in the ocean.