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please do stock, corporate bond, and government bond. Thanks Expected return. Hull Consultants, a famous think tank in the Midwest, has provided probability estimates for
please do stock, corporate bond, and government bond. Thanks
Expected return. Hull Consultants, a famous think tank in the Midwest, has provided probability estimates for the four potential economic states for the coming year. The probability of a boom economy is 12%, the probability of a stable growth economy is 20%, the probability of a stagnant economy is 47%, and the probability of a recession is 21%. Estimate the expected returns on the following individual investments for the coming year, B. Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type. Data Table What is the expected return of the stock investment? (Click on the following icon in order to copy its contents into a spreadsheet.) 5.71 % (Round to two decimal places.) Investment Stock Corporate bond Government bond Recession - 11% Forecasted Returns for Each Economy Stable Growth Stagnant 12% 2% 7% 5% 6% 4% Boom 28% 10% 9% 3% 2%Step by Step Solution
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