What is the variance of the returns on this stock

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The rate of return on the common stock of Flowers by Flo is expected to be 20 percent in a boom economy, 11 percent in a normal economy, and only 3 percent in a recessionary economy. The probabilities of these economic states are 20 percent for a boom, 70 percent for a normal economy, and 10 percent for a recession. What is the variance of the returns on this stock?

Reference no: EM132005971

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