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Prob of End-of-Year Beginning Cash Return Percentage State of the Selling Price Price of the from your Rate of Economy of the Stock Stock

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Prob of End-of-Year Beginning Cash Return Percentage State of the Selling Price Price of the from your Rate of Economy of the Stock Stock investment Return Weighted average of rate of return B C D E=C-D F = E/D G=BxF Recession 0.35 7000 10000 Moderate Growth 0.5 12000 10000 Strong Growth 0.15 16000 10000 E(R)= P

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