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Four analysts cover the stock of Fluorine Chemical. One forecasts a 6 6 % return for the coming year. A second expects the return to
Four analysts cover the stock of Fluorine Chemical. One forecasts a 6
6% return for the coming year. A second expects the return to be negative 6
6%. A third predicts a return of 9
9%. A fourth expects a 3
3% return in the coming year. You are relatively confident that the return will be positive but notlarge, so you arbitrarily assign probabilities of being correct of 28 % comma
28%, 6 %
6%, 17 %
17%, and 49
49%, respectively, to theanalysts' forecasts. Given theseprobabilities, what is FluorineChemical's expected return for the comingyear?
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