Malone Imports stock should return 12 percent in a boom, 10 percent in a normal economy, and 2 percent in a recession.The probabilities of a boom, normal economy, and recession are 5 percent, 85 percent, and 10 percent, respectively.What is the variance of the returns on this stock?
A)..000522
B)..000611
C)..024718
D)..006107
E)..015254

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The Answer of Malone Imports stock should return 12 percent in a boom, 10 percent in a normal economy, and 2 percent in a recession.The probabilities of a boom, normal economy, and recession are 5 percent, 85 percent, and 10 percent, respectively.What is the variance of the returns on this stock?
A)..000522
B)..000611
C)..024718
D)..006107
E)..015254

Malone Imports Stock Should Return 12 Percent in a Boom