3 the return on a stocks would be 12 45 or 38 given that there is a re
Question
3. The return on a stocks would be 12%, 45%, or 38%, given that there is a recession, boom economy, and normal economic growth,respectively. There is a 15%, 35%, and
50% probability of a recession, boom economy, and normal economy, respectively. a. What is the probability of a boom economy? b. What return would an investor expect for this stock during boom economy?