Question: Given the following probability distribution, what is the expected return for Stock? State of economy Probability Return of stock) Boom 0.3 11.0% Average 0.4 5.0%

Given the following probability distribution, what is the expected return for Stock? State of economy Probability Return of stock) Boom 0.3 11.0% Average 0.4 5.0% Bust 0.3 --2.0% O a. 2.1% O b.3.5% OC, 4.796 O d.5.9% O e. 7.1%

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