Bruno's Stock Should Return 14 Percent in a Boom,11 Percent

question 39

Multiple Choice

Bruno's stock should return 14 percent in a boom,11 percent in a normal economy,and 4 percent in a recession.The probabilities of a boom,normal economy,and recession are 8 percent,90 percent,and 2 percent,respectively.What is the variance of the returns on this stock?

• A)011387
• B).000169
• C)001506
• D)001538
• E)011561

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