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1. What is the expected return on this stock given the following information? State of the Economy Probability E(R) Boom 0.4 14% Recession 0.6 -18%
1. What is the expected return on this stock given the following information?
State of the Economy | Probability | E(R) | |
Boom | 0.4 | 14% |
|
Recession | 0.6 | -18% |
|
A) -8.07 percent
B) -7.69 percent
C) -6.80 percent
D) -5.70 percent
E) -5.20 percent
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