Population statistics: F.ex, o Consider a stock currently priced at $100 o You believe there are three possible states of the economy next year good, bad, ugly o These states will occur with probabilities: Good = 0.6, Bad=0.3, Ugly=0.1, respectively o You forecast that the price of the stock will be $115 of good, $110 if bad and $90 if ugly o What is the stock return for each state