Question
Supposethere's an80% chance of a stock rising by20% and a20% chance of it falling by40%. What is the expected rate of return on thestock? The
Supposethere's an80% chance of a stock rising by20% and a20% chance of it falling by40%. What is the expected rate of return on thestock?
The answer is 8%
I want to know the formula used to get that answer please
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
