Answered: What is the variance of the following…

What is the variance of the following returns? State probability return Boom .2 .75 normal .55 .25 recession .15 -.1 depression .1 -.5 a. .0413 b. .01239 c. .1944 d. .2601 e. .3519

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter5: Probability: An Introduction To Modeling Uncertainty

Section: Chapter Questions

Problem 25P: The random variable x is known to be uniformly distributed between 10 and 20. a. Show the graph of...

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Question

100%

What is the variance of the following returns?

State probability return

Boom .2 .75

normal .55 .25

recession .15 -.1

depression .1 -.5

a. .0413

b. .01239

c. .1944

d. .2601

e. .3519

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