Consider the following information: State of Economy Recession Boom Probability of State of Economy .39 .61 Rate of Return if State Occurs -.13 .25 Calculate the expected return. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

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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Consider the following information:
State of
Economy
Recession
Boom
Probability of
State of Economy
Expected return
.39
.61
Rate of Return if State
Occurs
Calculate the expected return.
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
%
-.13
.25
Transcribed Image Text:Consider the following information: State of Economy Recession Boom Probability of State of Economy Expected return .39 .61 Rate of Return if State Occurs Calculate the expected return. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. % -.13 .25
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