What is the Expected Return for Amazon? O 17.25% O 19.50% O 15.10% None of the above
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
You are working as a portfolio manager for an Asset Management firm. The following table provides the annual returns expected under various market conditions or regime. Each regime has the
Please answer the following questions from the data in the table:
Given:
| Pandemic | Recession | Stable | Growth | |
| Annual expected return of amazon | 27.0% | -5.0% | 12.0% | 35.0% |
| Probability | 5.0% | 20.0% | 50.0% | 25.0% |
Step by step
Solved in 2 steps
