a

0.040

b

0.045

c

0.050

d

0.055

e

0.060

Calculate the expected Rate of Return, E(R)? Prob of End-of-Year Beginning Cash Return Percentage State of the Selling Price Price of the from your Rate of Economy of the Stock Stock investment Return Weighted average of rate of return B 0.35 E = C-D 7000 D 10000 F = E/D G=BXF Recession Moderate Growth Strong Growth 0.5 12000 10000 0.15 16000 10000 E(R) =