Question
A stock has an expected return of 10.50 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 10.50 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 | .33 | 10.1 | % | |
| Normal | .36 | 11.6 | % | |
| Boom | .31 | ? | ||
Multiple Choice
-
31.15%
-
32.57%
-
29.20%
-
33.98%
-
27.26%
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Financial Management In The Sport Industry
Authors: Matthew T Brown, Daniel Rascher, Mark S Nagel, Chad Mcevoy
1st Edition
1934432040, 978-1934432044
