Question: Based on the following information, calculate the expected return for the share: state of economy Probability of State of economy Rate of return if state

Based on the following information, calculate the expected return for the share:

state of economy

Probability of State of economy

Rate of return if state occurs

Recession

0.5

0.22

Normal

0.25

0.12

Boom

0.25

0.15

a.

9.50%

b.

12.25%

c.

10.25%

d.

11.00%

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