Stock A has the following returns for various states of the economy:
State of the
Economy Probability Stock A's Return
Recession 9 -72
Below Average 16 -15
Average 51 16
Above Average 14 35
Boom 10 85
Stock A's expected return is
A) 13.8. B) 9.9. C) 12.7. D) 16.5.
Question 2
Ethical behavior
A) is the fifth basic principles of finance.
B) in the corporate world means not breaking any laws.
C) is essential in business because unethical behavior destroys trust and business relationships.
D) cannot be a concern to managers who are expected to maximize shareholder value.
An activation barrier, representing the transition state
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