6. A stock has the following potential returns and the associated probabilities that each will occur. 18

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6. A stock has the following potential returns and the associated probabilities that each will occur. 18 Possible return Proba Probability of occurrence c73 1:32 61 3% 10% 25% 67.34 25% 50% 15.26 +3.38 12.5% 40% 12.5% What is the expected return on this stock? 8.47 +2.11 3.

b. 19.50% 13.88% C. 42.50% *626.56 15.43 + 2.52

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Fundamentals Of Investing

ISBN: 9780136117049

11th Edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Scott B. Smart, Scott J. Smart

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