Question
Four analysts cover the stock of Fluorine Chemical. One forecasts a 4%return for the coming year. The second expects the return to be negative 5%.The
Four analysts cover the stock of Fluorine Chemical. One forecasts a 4%return for the coming year. The second expects the return to be negative 5%.The third predicts a return of 8%
The fourth expects a 2% return in the coming year. You are relatively confident that the return will be positive but not large, so you arbitrarily assign probabilities of being correct of
34 %,6 %, 19 %and 41%
respectively, to the analysts' forecasts. Given these probabilities, what is Fluorine Chemical's expected return for the coming year?
Fluorine Chemical's expected return for the coming year is %
(Round to two decimal places.)
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