-What Is the Expected Return of Stock P?
A) 15

question 84

Multiple Choice

$\begin{array}{c}\begin{array}{c}\underline{\text {State of the economy}}\\\text {Boom}\\\text {Recession}\end{array}\begin{array}{c}\underline{\text {Probability}}\\.3\\.7\\\end{array}\begin{array}{c}\underline{\text {Stock Q}}\\14 \% \\8\% \\\end{array}\end{array}$

-What is the expected return of Stock P?

• A) 15.3%
• B) 10.9%
• C) 17.1%
• D) 14.4%
• E) 15.8%

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Definitions:

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