Based on the following information, State of Economy Probability of State of Economy Rate of Return if
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Question:
- Based on the following information,
State of Economy | Probability of State of Economy | Rate of Return if State Occurs | |
Recession | .22 | 11.20% | |
Normal | .25 | 12.70% | |
Boom | .53 | 23.70% |
- What is expected return? (1 point)
- What is the variance? (1 point)
Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
Posted Date: