What is the probability of a booming economy occurring

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A project's expected return is 15%, which represents a 35% return in a booming economy and a 5% return in a stagnant economy. What is the probability of a booming economy occurring if these are the only two economic states?

A. 18.33%

B. 25.00%

C. 33.33%

D. 50.00%

Reference no: EM13729778

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