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4. EXPECTED RETURN OF AN INDIVIDUAL STOCK - The expected return on a stock, given various Sou own shares in a firm. The stock has
4. EXPECTED RETURN OF AN INDIVIDUAL STOCK - The expected return on a stock, given various Sou own shares in a firm. The stock has the following possible returns, given various states of the economy. What is your expected return for the stock? State of Economy Boom Normal Recession Probability of Rate of Return If Expected Return State of Economy State Occurs E(R) 0.30 22% 0.65 12% 0.05 - 10% 1.00
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