Question
Compute the Expected Return assuming the four possible economic scenarios noted, each scenario's likelihood, and the estimated returns for each scenario: (Fast Growth 13.0% probability,
"Compute the Expected Return assuming the four possible economic scenarios noted, each scenario's likelihood, and the estimated returns for each scenario: (Fast Growth 13.0% probability, 50.0% expected return); (Slow Growth 57.0% probability, 5.5% expected return); (Recession 21.0% probability, -15.0% expected return); and (Depression 9.0% probability, -48.0% expected return)."
2.27% | ||
2.06% | ||
2.17% | ||
-1.88% | ||
-7.50% | ||
2.38% | ||
1.97% |
A stock originally purchased exactly 6 years ago for $318.25 per share is currently valued at $231.00 per share - what is the Geometric Mean Return generated by this investment since its original purchase date (assume annual compounding)?
-5.0% | ||
0.4% | ||
-5.2% | ||
6.3% | ||
-4.6% | ||
-5.5% | ||
5.5% |
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