Question

Based on the economic scenarios shown below, what is the stock’s annual expected return? Scenario Probability...

Based on the economic scenarios shown below, what is the stock’s annual expected return?

Scenario

Probability

Return

Boom

15%

35%

Normal

35%

20%

Recession

35%

-10%

Depression

15%

-20%

A) 5.6%
B) 5.2%
C) 5.4%
D) 5.0%
E) 5.8%
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