You expect the following set of possible outcomes for a stock: Outcome Probability Ending Stock Price...

You expect the following set of possible outcomes for a stock:

Outcome	Probability	Ending Stock Price	Holding Period Return (Percent)	Risk-free rate (Percent)
Good	35%	$120	44.5	4
Neutral	30%	$100	14	2
Bad	35%	$70	-16.5	.5

What is the variance of the risk-free rate? Please enter your answer rounded to the third decimal place.

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jeff jeffy answered 2 years ago

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