What is the variance of the returns on rtf

Reference no: EM13290608

If the economy booms, RTF, Inc. stock is expected to return 11 percent. If the economy goes into a recessionary period, then RTF is expected to only return 5 percent. The probability of a boom is 63 percent while the probability of a recession is 37 percent. What is the variance of the returns on RTF, Inc. stock?

0.001832
0.028398
0.000878
0.000222
0.000839

Reference no: EM13290608

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