Question

The return on shares of Fast Transportation Company is predicted under the following various economic conditions:...

The return on shares of Fast Transportation Company is predicted under the following various economic conditions:
Recession -0.11
Normal +0.09
Boom +0.20
If each economic state has the same probability of occurring (33.33%), what is the expected return of the stock?

*Place your answer in decimal form with four decial points. That is, an answer of fifteen and two-thirds would be inputted as .1567.

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Answer #1

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