Rosita owns a stock with an overall expected return of 14.40%. The economy is expected to either boom or be normal. There is a 52% chance the economy will boom. If the economy booms, this stock is expected to return 15%. What is the expected return on the stock if the economy is normal?
A)12.00%
B)12.83%
C)13.15%
D)13.75%
E)14.40%

Question

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The Answer of Rosita owns a stock with an overall expected return of 14.40%. The economy is expected to either boom or be normal. There is a 52% chance the economy will boom. If the economy booms, this stock is expected to return 15%. What is the expected return on the stock if the economy is normal?
A)12.00%
B)12.83%
C)13.15%
D)13.75%
E)14.40%

Rosita Owns a Stock with an Overall Expected Return of 14.40