2. An analyst has estimated the following probabilities for gross domestic product growth next year: P(4%) = 10%, P (3%) = 30%, P (2%) = 40%, P ( 1%) = 20% Based on these estimates, the expected value of GDP growth next year is A. 2.0%. B. 2.3%. C. 2.5%. D. 2.8%.
2. An analyst has estimated the following probabilities for gross domestic product growth next year: P(4%) = 10%, P (3%) = 30%, P (2%) = 40%, P ( 1%) = 20% Based on these estimates, the expected value of GDP growth next year is A. 2.0%. B. 2.3%. C. 2.5%. D. 2.8%.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:2. An analyst has estimated the following probabilities for gross domestic
product growth next year:
P(4%) = 10%, P (3%) = 30%, P (2%) = 40%, P (1%) = 20%
Based on these estimates, the expected value of GDP growth next
year is
A. 2.0%.
B. 2.3%.
C. 2.5%.
D. 2.8%.
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