An analyst provided the following table about the returns of Walmart Inc in 2023: Scenario Probability Return Good Normal Bad Disaster 6.0% 7.5% 4.5% 0.15 0.60 1.0% 0.20 0.05 0.16 What is Walmart Inc's expected return? 0.09 -0.04 -0.20

An analyst provided the following table about the returns of Walmart Inc in 2023: Scenario Probability Return Good Normal Bad Disaster 6.0% 7.5% 4.5% 0.15 0.60 1.0% 0.20 0.05 0.16 What is Walmart Inc's expected return? 0.09 -0.04 -0.20

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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Question

An analyst provided the following table about the returns of Walmart Inc in 2023:
Scenario Probability Return
Good
Normal
Bad
Disaster
6.0%
7.5%
4.5%
0.15
0.60
1.0%
0.20
0.05
0.16
What is Walmart Inc's expected return?
0.09
-0.04
-0.20

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