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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 13%, the probability of a stable growth economy is 18%, the probability of a stagnant economy is 47%, and the probability of a recession is 22% Estimate the expected returns on the following individual investments for the coming year C Forecasted Returns for Each Economy Investment Stock Corporate bond Government bond Boom 29% 10% 9% Stable Growth 12% 8% 7% Stagnant 2% 5% 4% Recession - 10% 4% 3% I
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