Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Four analysts cover the stock of Fluorine Chemical. One forecasts a 4% return for the coming year. The second expects the return to be 4%.
Four analysts cover the stock of Fluorine Chemical. One forecasts a 4% return for the coming year. The second expects the return to be 4%. The third predicts a return of 11%. 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%, 7%, 19%, and 45%, 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.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started