Staples incrsquos stock has a 50 chance of producing a 25


Staples Inc.’s stock has a 50% chance of producing a 25% return in a booming economy, a 25% chance of producing a 10% return if the economy is average, and a -28% return if it enters a recession. What is Staple’s expected rate of return?

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Financial Management: Staples incrsquos stock has a 50 chance of producing a 25
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