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An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy. Probability A 0.20 0.47 ? State Boom Normal Recession 0.22 0.18 0.12 Probability B 0.29 0.22 0.15 What is the probability of a recession? (Round your answer to 2 decimal places.)

An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy. Probability A 0.20 0.47 ? State Boom Normal Recession 0.22 0.18 0.12 Probability B 0.29 0.22 0.15 What is the probability of a recession? (Round your answer to 2 decimal places.)

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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b. Calculate the expected return for Stock A and Stock B. (Round your answers to 2 decimal places.) Stocks A Stocks B Expected Return % % c. Calculate the expected return for a portfolio that is invested 57% in A and 43% in B. (Round your answer to 2 decimal places.) Expected return
Transcribed Image Text:b. Calculate the expected return for Stock A and Stock B. (Round your answers to 2 decimal places.) Stocks A Stocks B Expected Return % % c. Calculate the expected return for a portfolio that is invested 57% in A and 43% in B. (Round your answer to 2 decimal places.) Expected return
An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy. Probability A 0.20 0.22 0.47 ? State Boom Normal Recession 0.18 0.12 Probability 8 0.29 0.22 0.15 a. What is the probability of a recession? (Round your answer to 2 decimal places.).
Transcribed Image Text:An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy. Probability A 0.20 0.22 0.47 ? State Boom Normal Recession 0.18 0.12 Probability 8 0.29 0.22 0.15 a. What is the probability of a recession? (Round your answer to 2 decimal places.).
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