Assume that the economy has an 36 chance of booming, a 39 chance of being normal, and being recessionary the remainder of the time A stock is expected to return 27 89 in a boom, 17 in a normal economy, and 12 31 in a recession What is the expected return on the stock

Question

Assume that the economy has an 36  chance of booming, a 39  chance of being normal, and being recessionary the remainder of the time  A stock is expected to return 27 89  in a boom, 17  in a normal economy, and  12 31  in a recession  What is the expected return on the stock

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Question

Assume that the economy has an 36% chance of booming, a 39% chance of being normal, and being recessionary the remainder of the time. A

Assume that the economy has an 36% chance of booming, a 39% chance of being normal, and being recessionary the remainder of the time. A stock is expected to return 27.89% in a boom, 17% in a normal economy, and -12.31% in a recession. What is the expected return on the stock?

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