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ANSWER Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .15 .13 Normal .49 .15
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| Consider the following information: |
| State of Economy | Probability of State of Economy | Rate of Return if State Occurs |
| Recession | .15 | .13 |
| Normal | .49 | .15 |
| Boom | .36 | .34 |
| Required: |
| Calculate the expected return. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimalplaces(e.g., 32.16).) |
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
5th edition
1259289907, 978-1259289903
