Question: Based on the following scenario, calculate the expected return for Stock A using the scenario approach. scenario probability Return recession 0.30 -0.42 neutral 0.25 0.21
Based on the following scenario, calculate the expected return for Stock A using the scenario approach.
| scenario | probability | Return |
|---|---|---|
| recession | 0.30 | -0.42 |
| neutral | 0.25 | 0.21 |
| boom | 0.45 | 0.97 |
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