GenLabs Has Been a Hot Stock the Last Few Years

question 72

Multiple Choice

GenLabs has been a hot stock the last few years, but is risky. The expected returns for GenLabs are highly dependent on the state of the economy as follows:
$\begin{array} { l l l } \underline{\text { State of Economy }} & \underline{\text { Probability }} & \underline{ \text { GenLabs Returns } }\\ \text { Depression } & . \mathbf { 0 5 } & \mathbf { - 5 0 \% } \\\text { Recession } & .10 & \mathbf { - 1 5 \% } \\\text { Mild Slowdown } & .20 & \mathbf { 5 \% } \\\text { Normal } & .30 & \mathbf { 1 5 \% } \\\text { Broad Expansion } & .20 & \mathbf { 2 5 } \% \\\text { Strong Expansion } & .15 & \mathbf { 4 0 \% }\end{array}$
-The variance of GenLabs returns is:

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Definitions:

Competitors

companies or entities that operate in the same industry and vie for the same customer base, offering similar products or services.

Adversarial

Pertains to actions or situations involving opposition or conflict, often used in contexts like legal disputes, competitions, or security scenarios.

Shadow IT

Information technology projects managed outside, and without the knowledge of, the IT department.

Encrypted

The process of converting information or data into a code, especially to prevent unauthorized access, ensuring data privacy and security.