A stock will return 35 if the economy recovers 4 if
The economy will recover (with probability 0.3), stagnate (with probability 0.5), or enter a depression. A stock will return 35% if the economy recovers, 4% if stagnation, and -40% if depression. What is the variance of stock returns?
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the economy will recover with probability 03 stagnate with probability 05 or enter a depression a stock will return 35
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