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What is the expected return if the economy is in a recession

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Beasley Enterprises stock has an expected return of 8.86 percent. The stock is expected to return 12.5 percent in a normal economy and 16 percent in a boom. The probabilities of a recession, normal economy, and a boom are 11 percent, 88 percent, and 1 percent, respectively. What is the expected return if the economy is in a recession?

  • -20.91 percent
  • -18.71 percent
  • -13.28 percent
  • -4.76 percent -22.72 percent

Reference no: EM131318167

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