Suppose stock market returns follow a normal distribution. The realized market returns are 3 0 % ,

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Question:

Suppose stock market returns follow a normal distribution. The realized market returns are

30 %, 15 %, - 20 %, 25 %,

and

- 5 %

in the past five years. The annual risk

-

free rate is

4 % .

What is the expected market return?

Related Book For answer-question

McGraw-Hill Education SAT 2017

ISBN: 9781259641657

1st Edition

Authors: Christopher Black, Mark Anestis

Posted Date: Mar 16, 2024 04:12 AM

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Suppose stock market returns follow a normal distribution. The realized market returns are 3 0 % ,

Question:

Expert Answer:

To find the expected market return well use the formula for calculating t... View the full answer

McGraw-Hill Education SAT 2017

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