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5. George is considering an investment in Vandelay Inc. and has gathered the following information. What is the expected return for a share of the
5. George is considering an investment in Vandelay Inc. and has gathered the following information. What is the expected return for a share of the firm's stock?
State of the Economy | Probability of the State | Return in the State |
Recession | .25 | -20% |
Steady | .60 | 10% |
Boom | .15 | 35% |
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