Business, 16.04.2020 17:23 ayandjay01

There is 5 percent probability of recession, 20 percent probability of a poor economy, 50 percent probability of a normal economy, and 25 percent probability of a boom. A stock has returns of −18.7 percent, 2.3 percent, 10.1 percent and 25.8 percent in these states of the economy, respectively. What is the stock's expected return?

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There is 5 percent probability of recession, 20 percent probability of a poor economy, 50 percent pr...