Homework 4 (Makeup for Oct 22 and 24) Saved Help Save & Exit Submit Check my...

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Homework 4 (Makeup for Oct 22 and 24) Saved Help Save & Exit Submit Check my work Consider the following information: points

Answer 1

Answer #1

Expected return is weighted average of the return of the scenarios

Expected return = w1 * r1 + w2 * r2

Expected return = 0.20 * -8% + 0.80 * 15%

Expected return = 10.40%

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Answer 2

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