Question
Financial analysts have estimated the returns on shares of Drucker Corporation and the overall market portfolio under various economic conditions as follows. The return for
Financial analysts have estimated the returns on shares of Drucker Corporation and the overall market portfolio under various economic conditions as follows. The return for Drucker in the following three economic states of nature are forecasted to be: -20% in recession, +11% in moderate growth, and +36% in a boom. Estimates for the market as a whole in the same economic states are -8% in recession, +5% in moderate growth, and +23% in boom. The analyst considers each state to be equally likely. What is the expected return for Drucker Corporation? % What is the expected return of the market? % Place your answers in percentage form (NOTE: NOT DECIMAL FORM) using two decimal places and no percentage sign. For example, an answer of five point five five percent would be entered 5.55.
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