Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the common stock of crisisgreat is expected to ear

The common stock of CrisisGreat is expected to earn 17 percent in a recession, 6...

90.2K

Verified Solution

Question

Finance

The common stock of CrisisGreat is expected to earn 17 percent in a recession, 6 percent in a normal economy, and lose 9 percent in a booming economy. The probability of a boom is 24 percent while the probability of a recession is 10 percent. What is the expected rate of return on this stock? ____ %

Instruction: Enter your response as a percentage with two decimal places.

For example, if your answer is 0.1213=12.13%, please only enter "12.13", please do not enter "0.1213" or "12.13%", the system may not recognize the % sign. You may put negative signs if necessary

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

Biology
1.2K views

In a wet mount each of the following complications put false positives, false neg, no effect...

Physics
1.2K views

please answe these 2 topic Topic 1: Electromagnetic Waves Electromagnetic waves differ from mechanical waves in that they...

General Management
1.2K views

What are the basic elements of a valid contract? What are the elements of an offer?...

Basic Math
1.2K views

9 Interest rates and decisions Suppose that a firm is facing an upward sloping yield...

Basic Math
1.2K views

The price-demand equation for a particular flashlight is given by p= 113 0.004x, where x...

Algebra
1.2K views

Divide 1 a 11a 13a 27 a 10 6 a 10 7 A a a...

Accounting
1.2K views

Suppose you buy 50 shares of RBC at $90 per share,...

Accounting
1.2K views

Wages are paid every Saturday for a five-day work week (Mon - Fri; two days...

Accounting
1.2K views

Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80,...

Accounting
1.2K views

Ouestion 43 (1 point) The type of account that is used to record money the...

Accounting
1.2K views

The Stevens Company provided $49,000 of services on account during 2014, its first year in...

Accounting
1.2K views

Where are selling and administrative expenses found on the multiple-step income statement? a. before gross...