Question
Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone: (Do not round intermediate calculations.
Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone: (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
| State of Economy | Probability of State of Economy | Security Return if State Occurs | ||||||||||
| Recession | 0.30 | -5.7 | % | |||||||||
| Normal | 0.55 | 9.0 | ||||||||||
| Boom | 0.15 | 16.9 | ||||||||||
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Handbook Of Business Valuation
Authors: Thomas L. West, Jeffrey D. Jones
2nd Edition
0471297879, 978-0471297871
