Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .17 –.12 Normal .48 .14 Boom .35 .33 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
expected return =
Expected return=Respective return*Respective probability
=(0.17*-12)+(0.48*14)+(0.35*33)
which is equal to
=16.23%
Consider the following information: State of Economy Probability of State of Economy Rate of Return if...
Consider the following information: Rate of Probability of State Return State of if State Economy of Economy 17 Occurs Recession -12 Normal 48 14 Boom 35 33 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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Consider the following information: State of Probability of State Rate of Return Economy of Economy if State Occurs Recession -.10 Normal .12 Boom .31 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return
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