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SirJohnny SirJohnny
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A month ago
You have been given the following forecasts for the economy and Stock A: (1) the probability of having a recession next year is 30.0%, a normal economy is 55.0%, and an expansion is 15.0%, and (2) the price of Stock A will be $9 if the economy is in recession, $15 if the economy is normal, and $18 if the economy is in expansion. What is the ex ante variance of Stock A's returns if it is currently selling for $12?

▸ 29.4219%2

▸ 54.2419%2

▸ 7.1719%2

▸ 26.7804%2
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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wonton1wonton1
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A month ago
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SirJohnny Author
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Brilliant
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this is exactly what I needed
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