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Problem 10-1 Expected Return (LG10-1) Compute the expected return given these three economic states, their likelihoods, and the potential returns: Note: Round your answer to 2 decimal places. Economic State Fast growth Slow growth Recession Expected return Probability 0.25 0.45 0.30 % Return 52% 13 -28

Problem 10-1 Expected Return (LG10-1) Compute the expected return given these three economic states, their likelihoods, and the potential returns: Note: Round your answer to 2 decimal places. Economic State Fast growth Slow growth Recession Expected return Probability 0.25 0.45 0.30 % Return 52% 13 -28

Essentials Of Investments
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
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Problem 10-1 Expected Return (LG10-1) Compute the expected return given these three economic states, their likelihoods, and the potential returns: Note: Round your answer to 2 decimal places. Economic State Fast growth Slow growth Recession Expected return Probability 0.25 .45 0.30 % Return 52% 13 -28
Transcribed Image Text:Problem 10-1 Expected Return (LG10-1) Compute the expected return given these three economic states, their likelihoods, and the potential returns: Note: Round your answer to 2 decimal places. Economic State Fast growth Slow growth Recession Expected return Probability 0.25 .45 0.30 % Return 52% 13 -28
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