Use the following information to answer the question.    Based on above data, determine the expected return? Select one: a. 12.06% b. 19% c. 17.35% d. 16.72%

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 26SP
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Use the following information to answer the question. 

 

Based on above data, determine the expected return?

Select one:
a. 12.06%
b. 19%
c. 17.35%
d. 16.72%
Outcome
Probability
Return
Recession
20%
-20%
Expansion
25%
15%
Boom
55%
35%
Transcribed Image Text:Outcome Probability Return Recession 20% -20% Expansion 25% 15% Boom 55% 35%
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