RTF Stock Is Expected to Return 11 Percent in a Normal

question 66

Multiple Choice

RTF stock is expected to return 11 percent in a normal economy and lose 15 percent in a recession.The probability of a recession is 33 percent and the probability of a booming economy is zero.What is the variance of the returns on RTF stock?

• A)0.019093
• B)0.013760
• C)0.017864
• D)0.014946
• E)0.019394

---

Definitions:

Newborns

Infants in the first few weeks of life, experiencing rapid physical and neurological development.

Reflexes

Automatic, involuntary responses to specific stimuli, designed to protect the body and maintain homeostasis without conscious effort.

Nipple

A small projection of skin on the breast through which, in females, milk is delivered to a mother’s young.

Food

Substances consumed to provide nutritional support for the body, primarily consisting of plant, animal, or fungal origin.