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-What Is the Expected Return of Stock F?
A) 10

Question 72

Multiple Choice

State of the economyBoomNormalRecessionProbability.3.4.3Stock F65%14%50%\begin{array}{c}\begin{array}{c}\underline{\text {State of the economy}}\\\text {Boom}\\\text {Normal}\\\text {Recession}\end{array}\begin{array}{c}\underline{\text {Probability}}\\.3\\.4 \\.3 \end{array}\begin{array}{c}\underline{\text {Stock F}}\\65 \% \\14 \% \\-50 \%\end{array}\end{array}

-What is the expected return of Stock F?


A) 10.67%
B) 11.15%
C) 10.10%
D) 11.76%
E) 10.86%

Correct Answer:

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