Given the information in the following table, what is the expected return of the security?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Given the information in the foliowing table, what is the expected return of the
security?
State of Economy Probability of Occurrence Expected Return
High Growth
10%
12%
Moderate Growth
20%
8%
Stable
40%
3%
Recession
30%
-2%
Oa 12%
Ob. 8%
Oc. 3%
Od. 4.3%
Oe. 34%
Transcribed Image Text:Given the information in the foliowing table, what is the expected return of the security? State of Economy Probability of Occurrence Expected Return High Growth 10% 12% Moderate Growth 20% 8% Stable 40% 3% Recession 30% -2% Oa 12% Ob. 8% Oc. 3% Od. 4.3% Oe. 34%
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