Question: What is the expected return on this stock given the following information? The probability of an economic expansion is 60% and the probability of a
What is the expected return on this stock given the following information? The probability of an economic expansion is 60% and the probability of a recession is (1 - the probability of an expansion). If there is an economic expansion, the stock return will be 14.9% and if there is a recession the return will be 1.9%. Enter your answer in % form without the % symbol (so if your answer is 13.4%, type 13.4)
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