Question
Use the following information: Stock Good state Bad state A 11% 0% B 14% -1% Assume there is 60% probability that the good state
Use the following information: Stock Good state Bad state A 11% 0% B 14% -1% Assume there is 60% probability that the good state occurs and 40% chance the bad state occurs. What is the expected return of stock A? (Please use 5 decimal places, this should be written in percentage return, so an answer of 23.143% should be written at 23143)
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Income Tax Fundamentals 2013
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