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

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

 

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