Use the following information on states of the economy and stock returns to calculate the expected return

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Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone:State of Economy Probability of State of Economy Security Return if State Occurs Recession .25 -8% Normal 13 .50 23 Boom Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Fundamentals of Investments, Valuation and Management

ISBN: 978-1259720697

8th edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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