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Investment advisors estimated the stock market returns for four market segments: computers, financial, manufacturing, and pharmaceuticals. Annual return projections vary depending on whether the general
Investment advisors estimated the stock market returns for four market segments: computers, financial, manufacturing, and pharmaceuticals. Annual return projections vary depending on whether the general economic conditions are improving, stable, or declining. The anticipated annual return percentages for each market segment unde each economic condition are as follows: (a) Assume that an individual investor wants to select one market segment for a new investment. A forecast shows improving to declining economic conditions with the following probabilities: improving 0.2 , stable 0.5 , and declining 0.3 . What is the preferred market segment for the investor? What is the expected return percentage? Round your answer to one decimal place. Expected Return = (b) At a later date, a revised forecast shows a potential for an improvement in economic conditions. New probabilities are as follows: improving 0.4 , stable 0.4 , and declining 0.2. What is the preferred market segment for the investor based on these new probabilities? What is the expected return percentage? Round your answer to one decimal place. Expected Return = Investment advisors estimated the stock market returns for four market segments: computers, financial, manufacturing, and pharmaceuticals. Annual return projections vary depending on whether the general economic conditions are improving, stable, or declining. The anticipated annual return percentages for ment each economic condition are as follows: (a) Assume that an individual investor wants to select one market segment for a new investment. A forecast shows improving to declining economic conditions with the following probabilities: improving 0.2 , stable 0.5 , and declining 0.3 . What is the preferred market segment for investor? - Select your answer - Computers percentage? Round your answer to one decimal place. Financial % Manufacturing Pharmaceuticals cast shows a potential for an improvement in economic conditions. New probabilities are as follows: improving 0.4 , stable 0.4 , and declining 0.2 . What is the preferred market segment for the investor based on these new probabilities? What is the expected return percentage? Round your answer to one decimal place. Expected Return = % Check My Work (1 remaining)
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