Question: Bernard Companies stock has an expected return of 10.75 percent. The stock is expected to return 13.5 percent in a normal economy and 19.6 percent
Bernard Companies stock has an expected return of 10.75 percent. The stock is expected to return 13.5 percent in a normal economy and 19.6 percent in a boom. The probabilities of a recession, normal economy, and a boom are 5 percent, 80 percent, and 15 percent, respectively. What is the expected return if the economy is in a recession? Seleccione una: a.-36.72 percent b.-42.77 percent C.-68.20 percent d. -59.80 percent e. -63.76 percent
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
