Question: Compute the expected return for a security with the following projected returns. state of the economy probability (%) Projected return recession 8 -14.52 moderate 19

Compute the expected return for a security with the following projected returns.

state of the economy probability (%) Projected return

recession 8 -14.52

moderate 19 5.45

average 52 13.85

good 14 18.13

outstanding 7 22.77

The expected return is? (round to 2 decimal places)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!