Compute the expected return and standard deviation given these four economic states, their likelihoods, and the potential
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The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Economic State Probability Return Fast growth Slow growth Recession Depression 0.30 0.50 0.15 0.05 60% 13 -15 -45
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Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
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