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Noah's Landing stock is expected to produce the following returns given the various states of the economy. What is the expected return on this stock?
Noah's Landing stock is expected to produce the following returns given the various states of the economy. What is the expected return on this stock?
| State of Economy | Probability of State | Rate of Return |
|---|---|---|
| Recession | 40% | -25% |
| Normal | 45% | 18% |
| Boom | 15% | 31% |
Expected Return = %
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Bakers Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Thomas K. Ross
6th Edition
1284233162, 978-1284233162
