It is your job as an analyst to forecast next year's stock return for BFred Inc....

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It is your job as an analyst to forecast next years stock return for BFred Inc. Through lots of research and hard work, you

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Answer 1

Answer #1

Probability of Possible Outcome Growth = (1-0.14-0.27-0.40)

= 0.19

Expected Return as a percentage= Probability of Possible Outcomes * Probability of Expected Returns

= (-55%*0.14)+(-10%*0.27)+(19.79%*0.40)+(46.86%*0.19)

= 6.4194%

Answer = 6.4194%

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Answer 2

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It is your job as an analyst to forecast next year's stock return for BFred Inc....

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