Question
A project's expected return is 15%, which represents a 35% return in a booming economy and a 5% return in a stagnant economy. What is
A project's expected return is 15%, which represents a 35% return in a booming economy and a 5% return in a stagnant economy. What is the probability of a booming economy occurring if these are the only two economic states?
| A. 18.33% | |
| B. 25.00% | |
| C. 33.33% | |
| D. 50.00% |
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Contemporary Financial Management
Authors: R. Charles Moyer, William J. Kretlow, James R. Mcguigan
7th Edition
0538877766, 9780538877763
