The Rate of Return on the Common Stock of Flowers

question 3

Multiple Choice

The rate of return on the common stock of Flowers by Flo is expected to be 14% in a boom economy,8% in a normal economy,and only 2% in a recessionary economy. The probabilities of these economic states are 20% for a boom,70% for a normal economy,and 10% for a recession. What is the variance of the returns on the common stock of Flowers by Flo?

• A) .001044
• B) .001280
• C) .001863
• D) .002001
• E) .002471

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Definitions:

Equitable

Fair and impartial treatment of all individuals, especially in terms of resource distribution and opportunities.

Racialization

is the process of ascribing ethnic or racial identities to a relationship, social practice, or group that did not identify itself as such.

Racial Minority Group

A group of people who are differentiated or marginalized in a given society based on racial or ethnic characteristics, often facing systemic inequalities.

Ethnic Minority Group

A group within a larger society that has distinct national, religious, linguistic, or cultural attributes differing from the majority population.