Solution-What return should he expect from the investment

What return should he expect from the investment

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Reference no: EM132644432

Question - Peter is considering investing purchasing a stock as follows:

ECONOMY	RETURN	PROBABILITY
Growth	20%	60%
Stable	7%	30%
Recession	-8%	10%

Required - Suppose the Risk Free Rate is 7% and Risk Premium is 8%, what return should he expect from the investment?

Reference no: EM132644432

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What return should he expect from the investment

Reference no: EM132644432

Reference no: EM132644432

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