follow with calculation. thanks You recently purchased a stock that is expected to earn 11 percent...

Question

Question

follow with calculation. thanks

business finance

Answer 1

Answer #1

ANSWER = 8.97%

Total probability = 1

Probability of recession = Total probability - Probability of boom - Probability of normal

Probability of recession = 1 - 0.17 - 0.75

Probability of recession = 0.08

Answer 2

Similar Homework Help Questions

You recently purchased a stock that is expected to earn 11 percent in a booming economy,...

You recently purchased a stock that is expected to earn 11 percent in a booming economy, 5 percent in a normal economy, and lose 3 percent in a recessionary economy. There is 15 percent probability of a boom, 72 percent chance of a normal economy, and 13 percent chance of a recession. What is your expected rate of return on this stock? Multiple Choice 7.69% 4.86% 4.33% 2.43% 5.33%
You recently purchased a stock that is expected to earn 12 percent in a booming economy,...

You recently purchased a stock that is expected to earn 12 percent in a booming economy, 9 percent in a normal economy and lose 4 percent in a recessionary economy. There is a 13 percent probability of a boom, a 75 percent chance of a normal economy. What is your expected rate of return on this stock? 8.79 8.18 4.00 7.18 7.83
You recently purchased a stock that is expected to earn 18 percent in a booming economy,...

You recently purchased a stock that is expected to earn 18 percent in a booming economy, 13 percent in a normal economy, and lose 4 percent in a recessionary economy. There is 21 percent probability of a boom, 68 percent chance of a normal economy, and 11 percent chance of a recession. What is your expected rate of return on this stock? 12.18% 3.70% 10.33% 6.09% 9.00%

You recently purchased a stock that is expected to earn 12 percent in a booming economy,...

You recently purchased a stock that is expected to earn 12 percent in a booming economy, 6 percent in a normal economy, and lose 2 percent in a recessionary economy. There is 15 percent probability of a boom, 74 percent chance of a normal economy, and 11 percent chance of a recession. What is your expected rate of return on this stock? 5.33% 6.25% 6.00% 3.01% 6.02%
You recently purchased a stock that is expected to earn 25 percent in a booming economy,...

You recently purchased a stock that is expected to earn 25 percent in a booming economy, 10 percent in a normal economy, and lose 26 percent in a recessionary economy. There is a 4 percent probability of a boom and a 80 percent chance of a normal economy. What is your expected rate of return on this stock?
You recently purchased a stock that is expected to earn 25 percent in a booming economy,...

You recently purchased a stock that is expected to earn 25 percent in a booming economy, 10 percent in a normal economy, and lose 22 percent in a recessionary economy. There is a 4 percent probability of a boom and a 50 percent chance of a normal economy. What is your expected rate of return on this stock?

You recently purchased a stock that is expected to earn 30 percent in a booming economy,...

You recently purchased a stock that is expected to earn 30 percent in a booming economy, 9 percent in a normal economy, and lose 33 percent in a recessionary economy. There is a 5 percent probability of a boom and a 75 percent chance of a normal economy. What is your expected rate of return on this stock? -3.40 percent O -2.25 percent O 1.65 percent 2.60 percent 3.50 percent
You recently purchased a stock that is expected to earn 12% in a booming economy, 8%...

You recently purchased a stock that is expected to earn 12% in a booming economy, 8% in a normal economy and lose 5% in a recessionary economy. There is a 15% probability of a boom, a 75% chance of a normal economy, and a 10% chance of a recession. What is your expected rate of return on this stock?
You recently purchased a stock that is expected to earn 19 percent in a booming economy,...

You recently purchased a stock that is expected to earn 19 percent in a booming economy, 8 percent in a normal economy, and lose 28 percent in a recessionary economy. There is a 20 percent probability of a boom and a 70 percent chance of a normal economy. What is standard deviation on this stock?

You recently purchased a stock that Is expected to earn 12 percent in a booming economy,...

You recently purchased a stock that Is expected to earn 12 percent in a booming economy, 6 percent In a normal economy, and lose 2 percent In a recessionary economy. There is a 15 percent probablity of a boom, a 74 percent chance of a normal economy, and a 11 percent chance of a recession. What is your expected rate of return on thls stock? 5.33 percent 6.00 percent 3.01 percent 6.25 percent 6.02 percent