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What is the expected return on this stock given the following information? State of the Economy Probability of State of Economy Rate of Return if
What is the expected return on this stock given the following information?
| State of the Economy | Probability of State of Economy | Rate of Return if state occurs | |
| Boom | 0.05 | 16 | % |
| Normal | 0.45 | 7 | % |
| Recession | 0.50 | -12 | %
|
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Financial Management An Introduction
Authors: Jim McMenamin
1st Edition
0415181623, 9780415181624
