If the economy prospers, shares of RTF, Inc., are expected to return 12 percent. If the economy
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If the economy prospers, shares of RTF, Inc., are expected to return 12 percent. If the economy enters a period of recession, then RTF is expected to return only 4 percent. The probability of a boom is 76 percent, while the probability of a recession is 24 percent.
What is the variance of RTF, Inc. stock returns?
Related Book For
Intermediate Financial Management
ISBN: 978-1111530266
11th edition
Authors: Eugene F. Brigham, Phillip R. Daves
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