You Own a Stock Which Is Expected to Return 14

question 23

Multiple Choice

You own a stock which is expected to return 14% in a booming economy and 9% in a normal economy. If the probability of a booming economy decreases, your expected return will:

• A)decrease.
• B)either remain constant or decrease.
• C)remain constant.
• D)increase.
• E)either remain constant or increase.