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Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession 0.21 -0.09 Normal 0.45 0.16 Boom
| Consider the following information: |
| State of Economy | Probability of State of Economy | Rate of Return if State Occurs |
| Recession | 0.21 | -0.09 |
| Normal | 0.45 | 0.16 |
| Boom | 0.34 | 0.24 |
| Required: |
| Calculate the expected return. |
rev: 09_20_2012
Multiple Choice
-
13.47%
-
12.80%
-
14.01%
-
2.07%
-
14.14%
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Mathematics Of Finance
Authors: Robert Brown, Petr Zima
2nd Edition
0071756051, 9780071756051
