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Calculate Aida required rate of return from the share

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Question - Aida estimates three possible return outcomes for shares that she is considering to purchase. She predict that there are 45 percent chance the economy will boom, 50 percent chance the economy will continue at its current pace and 5 percent chance that the economy will drop and the expected return for the shares were 25 percent, 50 percent and -10 percent respectively based on the economic condition. Calculate Aida's required rate of return from the share.

Reference no: EM132802039

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