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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.
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 14%, the probability of a stable growth economy is 15%, the probability of a stagnant economy is 48%, and the probability of a recession is 23%. Estimate the expected returns on the following individual investments for the coming year, Hint: Make sure to round all intermediate calcul you will type. -X Data table What is the expected return of the stock investr % (Round to two decimal places.) (Click on the following icon e. in order to copy its contents into a spreadsheet.) Investment Stock Corporate bond Government bond Boom 21% 9% 8% Forecasted Returns for Each Economy Stable Growth Stagnant 13% 3% 7% 5% 6% 4% Recession - 11% 3% 2%
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