Question
State of Economy Probability ABC Company Expected Return XYZ Company Expected Return Very Poor 0.3 -25% -10% Poor 0.35 5% 17% Good 17% 27% Very
| State of Economy | Probability | ABC Company Expected Return | XYZ Company Expected Return |
| Very Poor | 0.3 | -25% | -10% |
| Poor | 0.35 | 5% | 17% |
| Good |
| 17% | 27% |
| Very Good | 0.15 | 24% | 30% |
A) Calculate the expected return of XYZ Company. (2 Mark) Please answer as a decimal to 3 decimal places.
Answer: Answer
B) Calculate the expected return of ABC Company. (1 Mark) Please answer as a decimal to 3 decimal places.
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Financial Management Theory And Practice
Authors: Prasanna Chandra
8th Edition
0071078401, 978-0071078405
