Given the following possible states of the economy and their associated probabilities and expected returns, what is
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Given the following possible states of the economy and their associated probabilities and expected returns, what is the expected return of this investment?
State of the Economy | Probability of State of the Economy | Investment Rate of Return if State Occurs | |
Boom | 20% | 13% | |
Normal | 45% | 6% | |
Recession | 35% | -9% |
Related Book For
Fundamentals of Financial Management
ISBN: 978-1305635937
Concise 9th Edition
Authors: Eugene F. Brigham
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