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What is the expected return of a stock based on the information in the following table? Outcome Probability of state Return in state Great 25.0%
What is the expected return of a stock based on the information in the following table?
Outcome | Probability of state | Return in state |
Great | 25.0% | 60.00% |
Good | 35.0% | 20.00% |
Medium | 30.0% | 8.00% |
Bad | ? | -27.00% |
A. | Answer is not possible or not listed | |
B. | 21.7% | |
C. | 0.433 | |
D. | 0.271 | |
E. | 24.4% |
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