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Expected Return Probable Return Stock A has the following returns for various states of the economy: A. Expected return = % (2 decimals) B. Assume
Expected Return Probable Return Stock A has the following returns for various states of the economy: A. Expected return = % (2 decimals) B. Assume that an investment is forecasted to produce the following returns: a 10% probability of a $1,400 return; a 50% probability of a $6,600 return; and a 40% probability of a $1,500 return. What is the expected amount of return this investment will produce? (No comma and decimal) C. return; a 50% probability of a 16% return; and a 20% probability of a 19% return. What is the expected percentage return this investment will produce? % (2 decimals)
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