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Calculate the expected return on stock: State of the economy Probability of the state Percentage returns on stock Economic recession 25% -8.5% Boom 12% 15.6%
Calculate the expected return on stock:
| State of the economy | Probability of the state | Percentage returns on stock |
| Economic recession | 25% | -8.5% |
| Boom | 12% | 15.6% |
| Steady economic growth | 63% | 3.4% |
Round the answers to two decimal places in percentage form.
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
3rd Edition
0324274319, 9780324274318
