Question
There is a 25% chance the stock market will return 10% next year. There is a 35% chance the stock market will return 6%. There
There is a 25% chance the stock market will return 10% next year. There is a 35% chance the stock market will return 6%. There is a 40% chance the stock market will return -8% next year. What is the expected return of the stock market next year? please show work
a. 8
b. 7.8
c. 2.2
d. 1.4
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Get StartedRecommended Textbook for
Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
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