Question: Two Homework Problems: 8-1 Calculate the stock's expected return. The stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand
Two Homework Problems: 8-1 Calculate the stock's expected return. The stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurrin Rate of Return if This Demand Occurs Weak Below average Average Above average Strong 0.10 0.10 0.30 0.30 0.20 -30% 14% 11% 2096 45% 8-2. Stocks A and B have the following probability distributions of expected future returns: 0.10 35% 12% 20% 20% 25% Calculate the expected returns for Stock A and for Stock B
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