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Calculate the Expected Rate of Return, E(R) ? begin{tabular}{|l|c|c|l|l|l|l|} hline & Prob of State of the Economy & End-of-Year Selling Price of the Stock &
Calculate the Expected Rate of Return, E(R) ?
\begin{tabular}{|l|c|c|l|l|l|l|} \hline & Prob of State of the Economy & End-of-Year Selling Price of the Stock & Beginning Price of the Stock & Cash Return from your investment & Percentage Rate of Return & Weighted average of rate of return \\ \hline A & B & C & D & E = C - D & F = E/D & G = B x F \\ \hline Recession & 0.35 & 7000 & 10000 & & & \\ \hline Moderate Growth & 0.5 & 12000 & 10000 & & & \\ \hline Strong Growth & 0.15 & 16000 & 10000 & & & \\ \hline \end{tabular} E(R)=Step by Step Solution
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