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A stock has an expected return of 10.14 percent. Based on the following information, what is the stock's return in a boom state of the
A stock has an expected return of 10.14 percent. Based on the following information, what is the stock's return in a boom state of the economy?
| State of Economy | Probability of State of Economy | Rate of Return if State Occurs |
|---|---|---|
| Recession | .21 | 8.9% |
| Normal | .48 | 10.4% |
| Boom | .31 | ? |
Multiple Choice
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23.66%
-
24.69%
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22.64%
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19.81%
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21.22%
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