Elrond has made an investment that will generate returns that are based on the state of the economy. Use the following information to calculate the variance of the return distribution for Elrond's investment. (Do not round intermediate computations. Round your final answer t four decimal places.) State Return. Probability Weak. 0.10 OKO. 0.17 Great 0.28 0.1 0.8 0.1

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Elrond has made an investment that will
generate returns that are based on the
state of the economy. Use the following
information to calculate the variance
of the return distribution for Elrond's
investment. (Do not round intermediate
computations. Round your final answer to
four decimal places.)
State Return. Probability
Weak. 0.10
OKO. 0.17
Great 0.28 0.1
a) 0.0543
b) 0.0536
c) 0.0550
d) 0.0031
0.8
0.1
Transcribed Image Text:Elrond has made an investment that will generate returns that are based on the state of the economy. Use the following information to calculate the variance of the return distribution for Elrond's investment. (Do not round intermediate computations. Round your final answer to four decimal places.) State Return. Probability Weak. 0.10 OKO. 0.17 Great 0.28 0.1 a) 0.0543 b) 0.0536 c) 0.0550 d) 0.0031 0.8 0.1
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