Question: A stock has an expected return of 7.5%. Based on the following information, what is the stock's return in a boor State of Economy

A stock has an expected return of 7.5%. Based on the following

A stock has an expected return of 7.5%. Based on the following information, what is the stock's return in a boor State of Economy Recession Normal Boom O 13.2% O 10.9% 11.5% O 12.3% Probability of State of Economy 0.25 0.35 0.40 Rate of Return if State Occurs -8% 14% ?

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