What is the expected return on stock y for next year

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Reference no: EM131313008

If the economy recovers next year, analysts expect Stock Y's return for the year to be 15%; if the economy does not recover, analysts expect Stock Y's return for the year to be -15%.

If there is a 50% chance that the economy will recover, and a 50% that it will not, what is: a. The expected return on Stock Y for next year?

Reference no: EM131313008

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