Question: We consider a stock (i) on the market. The profitability of stock (i), in the time interval from t=0 to t=1, is denoted by


 We consider a stock (i) on the market. The profitability of stock 

We consider a stock (i) on the market. The profitability of stock (i), in the time interval from t=0 to t=1, is denoted by (Ri) and has the following distribution: R: 0,2 0,3 0,2 0,2 0,1 1,4 1,5 1,5 1,4 1,4) Calculate the average (expected) return of the share:

Step by Step Solution

3.48 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To calculate the average expected return of the stock you need ... View full answer

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!