If the economy is normal, Charleston Freight stock is expected to return 16.5 percent. If the economy
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If the economy is normal, Charleston Freight stock is expected to return 16.5 percent. If the economy falls into a recession, the stock's return is projected at a negative 11.6 percent. The probability of normal exonomy is 80 percent while the probability of a recession is 20 percent. What is the variance of the returns on this stock?
Related Book For
Principles of Money Banking and Financial Markets
ISBN: 978-0321339195
12th edition
Authors: Lawrence S. Ritter, William L. Silber, Gregory F. Udell
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