Question: Given the following probability distributions, what are the expected returns for the Market and for Security J? State 1 P1 = 0.2 Km = -10%

Given the following probability distributions, what are the expected returns for the Market and for Security J? State 1 P1 = 0.2 Km = -10% Kj = 40%; State 2 P1 = 0.5 Km = 10% Kj = -20%; State 3 P1 = 0.3 Km = 30% Kj = 30%

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