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Suppose the following information represents possible future reutnrs for ATT stock next year: State of Economy Probability of state of economy Rate of return if
Suppose the following information represents possible future reutnrs for ATT stock next year:
State of Economy | Probability of state of economy | Rate of return if state occurs |
1 | .20 | 12% |
2 | .20 | 6% |
3 | .20 | -10% |
4 | .20 | 22% |
5 | .20 | 5% |
1.00 |
What is the expected rate of return for ATT common stock?
What is the variance of return for ATT common stock?
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