Expected return on stock, The stock has an expected return

Expected return on stock

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Reference no: EM13971572

The stock has an expected return of 3.3%. Given the information below, what is the expected return on this stock if the economy booms?

State of Economy	Probability	Rate of Return
Recession	0.35	-0.04
Normal	0.6	0.07
Boom	0.05	?

a. 8.6%

b. 10.0%

c. 10.69%

d. 10.48%

e. 9.2%

Reference no: EM13971572

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