What Is the Expected Return on This Stock Given the Following

question 86

Multiple Choice

What is the expected return on this stock given the following information?
$\begin{array}{lcc}\text { State of the Economy}&\text { Probability}&\text { E(R) }\\\text { Boom } & .4 & 12\% \\\text { Recession } & .6 & -12\%\end{array}$

• A)5.70%
• B)5.20%
• C)4.80%
• D)3.70%
• E)2.40%

---

Definitions:

Feeding Disorders

Disorders characterized by abnormal eating habits that may involve either insufficient or excessive food intake, affecting physical health and emotional well-being.

Eating Disorders

Psychological disorders characterized by abnormal or disturbed eating habits that negatively affect a person's physical or mental health.

Anorexia Nervosa

A serious mental health condition characterized by an intense fear of gaining weight and a distorted body image, leading to self-starvation.

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a standardized text on psychiatric diagnoses.