The returns on shares of Valley Transporter are predicted under the following various economic conditions: Recession -0. 10 Normal +0.04 Boom +0.24 If each economy state has the same probability of occurring (33.33%), what is the variance of the stock?

The returns on shares of Valley Transporter are predicted under the following various economic conditions: Recession -0. 10 Normal +0.04 Boom +0.24 If each economy state has the same probability of occurring (33.33%), what is the variance of the stock?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

The returns on shares of Valley Transporter are predicted under the following various economic conditions: Recession -0.
10 Normal +0.04 Boom +0.24 If each economy state has the same probability of occurring (33.33%), what is the variance
of the stock?

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