Discuss about the expected rate of return

Reference no: EM132070938

Question: You recently purchased a stock that is expected to earn 30 percent in a booming economy, 9 percent in a normal economy, and lose 33 percent in a recessionary economy. There is a 5 percent probability of a boom and a 75 percent probability of a normal economy. What is your expected rate of return on this stock?

Reference no: EM132070938

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