Express scripts stock is expected to earn 15 in a recession


Express Scripts stock is expected to earn 15% in a recession, 10% in a normal economy, and 5% in a booming economy. The probability of a boom is 20% while the probability of a normal economy is 50% and the chance of a recession is 30%. What is the expected rate of return on this stock?

8.50%

10.00%

9.50%

10.50%

None of the above

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Financial Management: Express scripts stock is expected to earn 15 in a recession
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