What is the variance of the returns on stock

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If the economy booms, RTF, Inc. stock is expected to return 13 percent. If the economy goes into a recessionary period, then RTF is expected to only return 5 percent. The probability of a boom is 83 percent while the probability of a recession is 17 percent. What is the variance of the returns on RTF, Inc. stock?

.000750

.000903

.000596

.030051

.058200

Reference no: EM13934409

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