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Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession 0.21 -0.05 Normal 0.65 0.12 Boom
| Consider the following information: |
| State of Economy | Probability of State of Economy | Rate of Return if State Occurs |
| Recession | 0.21 | -0.05 |
| Normal | 0.65 | 0.12 |
| Boom | 0.14 | 0.29 |
| Required: |
| Calculate the expected return. |
Multiple Choice
-
10.27%
-
11.24%
-
10.81%
-
2.40%
-
11.35%
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Finance Bundling And Finance Transformation
Authors: Frank Keuper, Kai-Eberhard Lueg
1st Edition
3658042109, 978-3658042103
