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The options for both of the Select your answer questions are: computers, financial, manufacturing, pharmaceuticals Investment advisors estimated the stock market returns for four market
The options for both of the "Select your answer" questions are: computers, financial, manufacturing, pharmaceuticals
Investment advisors estimated the stock market returns for four market segments: computers, financial, manufacturing, and pharmaceuticals. Annual return market segment under each economic condition are as follows: (a) Assume that an individual investor wants to select one market segment for a new investment. A forecast shows improving to declining economic conditions with the following probabilities: improving 0.2, stable 0.5, and declining 0.3. What is the preferred market segment for the investor? What is the expected return percentage? Round your answer to one decimal place. Expected Return = % (b) At a later date, a revised forecast shows a potential for an improvement in economic conditions. New probabilities are as follows: improving 0.4, stable 0.3, and declining 0.3. What is the preferred market segment for the investor based on these new probabilities? What is the expected return percentage? Round your answer to one decimal place. Expected Return = %Step by Step Solution
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