Question: . If it is a rainy summer this year, the stock of Umbrella Inc. is expected to return 10%. If the summer is dry, then

. If it is a rainy summer this year, the stock of Umbrella Inc. is expected to return 10%. If the summer is dry, then Umbrella's stock is expected to only return 4%. The probability of a rainy summer is 60% while the probability of a dry summer is 40%. What is the variance of the returns on Umbrella Inc. stock? A. .000200 B. .000760 C. .000864 D. .001594

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