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Outcome Probability Return Boom 60% 32.7% Normal 25% 22.7% Recession 10% 10.5% Depression 5% 8.4% What is the arithmetic expected return on this asset? Please
Outcome | Probability | Return |
Boom | 60% | 32.7% |
Normal | 25% | 22.7% |
Recession | 10% | 10.5% |
Depression | 5% | 8.4% |
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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