What is variance of returns on stock for cheng plumbing

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Problem 1: If the economy flourishes, Cheng's Plumbing stock is expected to return 19%. If the economy falls into a recession, the stock's return is projected at 5%. The probability of a boom is 80% while the probability of a recession is 20%. What is the variance of the returns on this stock?

Reference no: EM132836578

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