Question: What is the expected return on this stock given the following information? State of the Economy Probability E(R) Boom 0.4 15 % Recession 0.6 -20

What is the expected return on this stock given the following information?

State of the Economy Probability E(R)
Boom 0.4 15 %
Recession 0.6 -20 %

Multiple Choice

A. -6.00 percent

B. -8.07 percent

C. -7.69 percent

E. -5.20 percent

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