Emmons Corporation has a 0.0 probability of a return of 0.49, a 0.4 probability of a rate of return of 0.07, and the remaining probability of a 0.0 rate of return. What is the variance in the expected rate of return of Emmons Corporation?

Emmons Corporation has a 0.0 probability of a return of 0.49, a 0.4 probability of a rate of return of 0.07, and the remaining probability of a 0.0 rate of return. What is the variance in the expected rate of return of Emmons Corporation?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Answer question in the image.
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