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QUESTION 40 Consider the information contained in the table below to help answer the next question: State of Economy Probability 5 Return (Return-Expected Return) 2

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QUESTION 40 Consider the information contained in the table below to help answer the next question: State of Economy Probability 5 Return (Return-Expected Return) 2 0.075625 Expansion 30% 40% Normal 50% 5% 0.005625 Recession 20% -10% 0.050625 Variance 0.035625 What is this stock's expected return? 1.47 percent. 9.00 percent. 11.67 percent 12.5 percent 35 percent

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