question archive The common share of The Dominic Companies should return 29% in a boom, 12% in a normal economy and -15% in a recession
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The common share of The Dominic Companies should return 29% in a boom, 12% in a normal economy and -15% in a recession. The probabilities of a boom, normal economy and recession are 12%, 86% and 2%, respectively. What is the variance of the returns on this share?
Select one:
a. 0.005809
b. 0.005019
c. 0.006047
d. 0.004701
e. 0.006270