Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. crabby shores stock is expected to return 15.7 per

Crabby Shores stock is expected to return 15.7 percent in a booming economy, 9.8 percent...

70.2K

Verified Solution

Question

Finance

Crabby Shores stock is expected to return 15.7 percent in a booming economy, 9.8 percent in a normal economy, and 2.3 percent in a recession. The probabilities of an economic boom, normal state, or recession are 15 percent, 73 percent, and 12 percent, respectively. What is the expected rate of return on this stock?

A. 10.74 percent

B. 9.79 percent

C. 8.68 percent

D. 10.07 percent

E. 10.61 percent

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Let f be a differentiable function on the interval [0, 2Ï€] with derivative f' . Show...

Advance Math
Q

In many cancer cell lines, PDH kinase (PDK) activity is increased. The result of this regulation...

Chemistry
Q

Answer the following: 1. Recognize the 5 strata and their functions 2. Recognize the hormones that act...

Medical Sciences
Q

Imagine that you are observing an enzyme-catalyzed reaction in the laboratory. The reaction is progressing as...

Biology
Q

A wire of length 4 cm is placed inside t he solenoid near the centre...

Physics
Q

multiplication rule O When calculating the probability of both A and B When calculating the...

Basic Math
Q

A Use an indirect proof to prove the following GIVEN A ABC is not isosceles...

Calculus
Q

5 Two buildings of equal height are 40 m apart At a point on the...

Algebra
Q

On January 2, 2019, Twilight Hospital purchased a $101,200 special radiology scanner from...

Accounting
Q

Dora Company declared and distributed a 15% stock dividend on 14,000 shares of issued and...

Accounting
Q

George Ltd owns all the share capital of Luke Ltd. The income tax rate is...

Accounting
Q

You realize you are entering the last third of your career and you are considering...

Finance