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Wazoo Corporation has three states of nature: boom (.25 probability), normal times (.45 probability) and recession (.3 probability). In a boom time,...
Wazoo Corporation has three states of nature: boom (.25 probability), normal times (.45 probability) and recession (.3 probability). In a boom time, its return would be 19.1%, in normal times its return is 12.9 and in a recession, its return is 6. What is Wazoo's variance? Express your answer as a percentage, two decimal places past the decimal point (e.g. 3.41 for 3.41%).