14. A stock is expected to return 13 percent in a economic boom, 10 percent in a

Question

14. A stock is expected to return 13 percent in a 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? A. An increase in the rate of return in a recessionary economy B. An increase in the probability of an economic boom. C. A decrease in the probability of recession occurring. D. A decrease in the probability of an economic boom E. An increase in the rate of return for a normal economy.

Explanation / Answer

D. A decrease in the probability of an economic boom

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.