What is the variance of the returns on RTF

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If the economy booms, RTF, Inc. stock is expected to return 12 percent. If the economy goes into a recessionary period, then RTF is expected to only return 2 percent. The probability of a boom is 78 percent while the probability of a recession is 22 percent. What is the variance of the returns on RTF, Inc. stock?

.041425

.001338

.049000

.000961

.001716

Reference no: EM13826789

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