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Also I need to find 2)The expected return of corporate bond investment 3) The expected return of government bond investment Expected return. Hull Consultants, a
Also I need to find
2)The expected return of corporate bond investment
3) The expected return of government bond investment
Expected return. Hull Consultants, a famous think tank in the Midwest, has provided probability estimates for the four potential economic states for the coming year. The probability of a boom economy is 13%, the probability of a stable growth economy is 15%, the probability of a stagnant economy is 50%, and the probability of a recession is 22%. Estimate the expected returns on the following individual investments for the coming year, e Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type. What is the expected return of the stock investment? % (Round to two decimal places.) X i Data Table - (Click on the following icon in order to copy its contents into a spreadsheet.) Investment Stock Corporate bond Government bond Boom 26% 10% 9% Forecasted Returns for Each Economy Stable Growth Stagnant 11% 7% 8% 5% 7% 4% Recession 10% 4% 3% Print DoneStep by Step Solution
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