Astock is expected to return 13 percent in an 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 a recession occurring.
d. a decrease in the probability of an economic boom
e. an increase in the rate of return for a normal economy.

The answer is  passage 1.

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