What is the expected rate of return on this share

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Question - 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: EM133015013

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