Question: Outcome Probability Return Boom 60% 32.7% Normal 25% 22.7% Recession 10% 10.5% Depression 5% 8.4% What is the arithmetic expected return on this asset? Please

Outcome Probability Return
Boom 60% 32.7%
Normal 25% 22.7%
Recession 10% 10.5%
Depression 5% 8.4%

What is the arithmetic expected return on this asset? Please report your answer as a decimal, rounded to the nearest thousandth. An answer of 8.63% would be entered as 0.086, for example.

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!