Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .44 −.13 Boom .56 .25 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .44 −.13 Boom .56 .25 Calculate the expected return. (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
Section: Chapter Questions
Problem 1PS
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Question
| Consider the following information: |
| State of Economy |
Probability of State of Economy |
Rate of Return if State Occurs |
| Recession | .44 | −.13 |
| Boom | .56 | .25 |
| Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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