Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Four analysts cover the stock of Fluorine Chemical. One forecasts a 5% return for the coming year. The second expects the return to be -

image text in transcribed

Four analysts cover the stock of Fluorine Chemical. One forecasts a 5% return for the coming year. The second expects the return to be - 4% The third predicts a return of 8% The fourth expects a 3% 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 29%, 8%, 17% and 46%, respectively, to the analysts' forecasts. Given these probabilities, what is Fluorine Chemicals expected return for the coming year? Fluorine Chemicals expected return for the coming year is % (Round to two decimal places) Enter your answer in the answer box Type here to search L 11. | 0 Ng 1009 3:12 PM 9/11/2020

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting

Authors: Nonso E Okpala

1st Edition

1634873904, 9781634873901

More Books

Students also viewed these Finance questions

Question

=+b. What is the probability that the resulting pH exceeds 6.10?

Answered: 1 week ago

Question

Where do attitudes come from? How do they change?

Answered: 1 week ago