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Outcome Probability Return Boom 60% 27.1% Normal 25% 18.0% Recession 10% 13.5% Depression 5% 7.6% What is the arithmetic expected return on this asset?
Outcome Probability Return Boom 60% 27.1% Normal 25% 18.0% Recession 10% 13.5% Depression 5% 7.6% What is the arithmetic expected return on this asset? Please report your answer as a decimal, rounded to the nearest thousandth. An answer of 8.63% would be entered as 0.086, for example.
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