2. Suppose the current market values of Bull market, Normal Market and Bear Market is 100 Pesos and no dividend income after one year. Base on the details below, compute for the Expected Rate of Return. Show your solutions in the space provide below and justify your answer Outcomes (after 1 year) Bull market (Stock Price P1 140 Pesos) Normal Market (Stock Price P1 110 Pesos) Bear market (Stock Price P1 - 80 Pesos) Probability(%) 30% 40% 30% 100 %

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
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2. Suppose the current market values of Bull market, Normal Market
and Bear Market is 100 Pesos and no dividend income after one year.
Base on the details below, compute for the Expected Rate of Return.
Show your solutions in the space provide below and justify your
answer
Outcomes (after 1 year)
Bull market (Stock Price Pl 140 Pesos)
Normal Market (Stock Price P1 110 Pesos)
Bear market ( Stock Price P1 - 80 Pesos)
Probability(%)
30%
40%
30%
100 %
Transcribed Image Text:2. Suppose the current market values of Bull market, Normal Market and Bear Market is 100 Pesos and no dividend income after one year. Base on the details below, compute for the Expected Rate of Return. Show your solutions in the space provide below and justify your answer Outcomes (after 1 year) Bull market (Stock Price Pl 140 Pesos) Normal Market (Stock Price P1 110 Pesos) Bear market ( Stock Price P1 - 80 Pesos) Probability(%) 30% 40% 30% 100 %
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