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5 You own a stock that you think will produce a retu rn of 11 percent in a good economy and 3 percent in a

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5 You own a stock that you think will produce a retu rn of 11 percent in a good economy and 3 percent in a poor economy. Given the probabilities of eac h state of the economy occurring, you anticipate t hat your stock will earn 6.5 percent next year. Whi ch one of the following terms applies to this 6.5p ercent? . a. Geometric return b. Arithmetic return c. Required return d. Expected return e. Historical return 5 You own a stock that you think will produce a retu rn of 11 percent in a good economy and 3 percent in a poor economy. Given the probabilities of eac h state of the economy occurring, you anticipate t hat your stock will earn 6.5 percent next year. Whi ch one of the following terms applies to this 6.5p ercent? . a. Geometric return b. Arithmetic return c. Required return d. Expected return e. Historical return

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