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Moon's furniture has estimated the following contingent returns: State of the Economy Probability that Stock Market Moon's Furniture state occurs Return (Average) return Stagnant

  

Moon's furniture has estimated the following contingent returns: State of the Economy Probability that Stock Market Moon's Furniture state occurs Return (Average) return Stagnant 0.3 -5% -10% Slow growth 0.35 8% 10% Average growth 0.25 10% 20% Rapid growth 0.1 25% 35% Task: Using the given probabilities, calculate the expected returns on the stock market and on Moon's Furniture

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