The Common Stock of Manchester & Moore Is Expected to Earn

question 61

Multiple Choice

The common stock of Manchester & Moore is expected to earn 13 percent in a recession,6 percent in a normal economy,and lose 4 percent in a booming economy.The probability of a boom is 5 percent while the probability of a recession is 45 percent.What is the expected rate of return on this stock?

• A)8.52 percent
• B)8.74 percent
• C)8.65 percent
• D)9.05 percent
• E)9.28 percent

---

Definitions:

Align Middle

A formatting option that centers the content vertically within its container or page.

Locked Property

A setting in software that prevents changes to the configuration or characteristics of an item or document.

Name Property

An attribute or field that holds the name identifier of an object or element in programming and markup languages.

Scroll Bars

Interactive graphical elements in a GUI that allow users to view content beyond the physical confines of a display area by scrolling vertically or horizontally.