What is the expected risk premium for this stock

Reference no: EM13275496

A stock is expected to earn 31 percent in a boom economy, 17.50 percent in a normal economy, and lose 35 percent in a recessionary economy. There is a 11 percent chance the economy will boom and a 72 percent chance the economy will be normal. What is the expected risk premium for this stock if the risk-free rate is expected to be 4.90 percent?

Reference no: EM13275496

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