The Common Stock of Taylor & Smith Is Expected to Earn

question 216

Multiple Choice

The common stock of Taylor & Smith is expected to earn 2% in a recession, 9% in a normal economy, and 13% in a booming economy. The probability of a boom is 15% while the probability of
A normal economy is 75% and the chance of a recession is 10%. What is the expected rate of return
On this stock?

• A) 8.35%
• B) 8.52%
• C) 8.67%
• D) 8.81%
• E) 8.90%

---

Definitions:

4PL Provider

Fourth Party Logistics Provider; a firm that assembles and manages all resources, capabilities, and technology of an organization's supply chain and its array of providers.

Types of Services

Categories that distinguish between the various forms of services offered in different industries, based on factors such as delivery method, customer interaction, and value proposition.

Available

The state of being at hand for use or easily obtainable.

Wireless Technologies

Technologies allowing the transmission of data and communication between devices without physical connections.