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What is the expected rate of return on the share

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Reference no: EM132920048

Problem 1: The Never Failing Supply share is expected to return 16% in a booming economy, 12% in a normal economy and -3% in a recession. The probabilities of an economic boom, normal state or recession are 30%, 50% and 20%, respectively. What is the expected rate of return on this share?

A. 11.28%
B. 10.20%
C. 10.95%
D. 11.91%

Reference no: EM132920048

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