Use the following information about Ford and S&P 500 to solve the question below. State Probability S&P
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Use the following information about Ford and S&P 500 to solve the question below.
State | Probability | S&P 500 return | Ford's return |
Recession | 0.30 | -18% | -22% |
Normal | 0.50 | 10% | 12% |
Boom | 0.20 | 14% | 20% |
What is the expected return on the S&P 500?
Expert Answer:
SOLUTION The expected return on the SP 500 can be calculated by multiplying the probability of each ... View the full answer
Related Book For 
Fundamentals of Investments, Valuation and Management
ISBN: 978-1259720697
8th edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
Posted Date:
