A stock's returns have the following distributions. For each of four states of the economy: 0.1 probability

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A stock's returns have the following distributions. For each of four states of the economy: 0.1 probability of a (10%) return, 0.2 probability of a 0% return, 0.5 probability of a 15% return, 0.2 probability of a 25% return.

Calculate the stock's expected return.

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Understanding Basic Statistics

ISBN: 9781111827021

6th Edition

Authors: Charles Henry Brase, Corrinne Pellillo Brase

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Posted Date: Jul 05, 2023 07:44 AM

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A stock's returns have the following distributions. For each of four states of the economy: 0.1 probability

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To calculate the expected return we use the f... View the full answer

Understanding Basic Statistics

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