Business
Business, 29.02.2020 02:24, xman839

A stock is expected to return 13 percent in an economic boom, 10 percent in a normal economy, and 3 percent in a recessionary economy. Which one of the following will lower the overall expected rate of return on this stock?
-An increase in the probability of an economic boom
-A decrease in the probability of a recession occurring
-An increase in the rate of return for a normal economy
-An increase in the rate of return in a recessionary economy
-A decrease in the probability of an economic boom

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Answers: 2

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A stock is expected to return 13 percent in an economic boom, 10 percent in a normal economy, and 3...

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