Question: 7. Based on the following information, calculate the expected return for Stock A. Prob. of State Stock A Return Stock B Return State of Economy

7. Based on the following information, calculate the expected return for

7. Based on the following information, calculate the expected return for Stock A. Prob. of State Stock A Return Stock B Return State of Economy Recession .20 5% -17% Normal .55 8% 12% Boom .25 13% 29% a. b. C. d. e. 9.55% 8.33% 8.70% 10.45% 8.65%

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