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Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .11 .09 Normal .45 .12 Boom
| Consider the following information: |
| State of Economy | Probability of State of Economy | Rate of Return if State Occurs |
| Recession | .11 | .09 |
| Normal | .45 | .12 |
| Boom | .44 | .35 |
| Calculate the expected return. |
-
20.80%
-
2.53%
-
19.81%
-
18.82%
-
20.60%
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Cost Of Capital Applications And Examples
Authors: Shannon P. Pratt, Roger J. Grabowski, Richard A. Brealey
5th Edition
1118555805, 9781118555804
