Question: please explain with formulas in excel Gold Excess Excess Excess Economic outcome Probability GM Return T-BIRI Return Return Return Sg Return 1 2 Depression 0.05
Gold Excess Excess Excess Economic outcome Probability GM Return T-BIRI Return Return Return Sg Return 1 2 Depression 0.05 -20% 5% 8% 3 Recession 03 10% 20% 8% 4 Normal 0.5 30% -8% 8% 5 Boom 0.15 50% 9% 8% 6 7 What is the corresponding probability distribution function? 8 9 What is F(20%)? 10 11 What is the probability of the GM stock having a return between 0% and 50% (including 12 both 0% and 50% points)? 13
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