Question
What is the expected return of a stock based on the information in the following table? Outcome Probability of state Return in state Great 25.0%
What is the expected return of a stock based on the information in the following table?
| Outcome | Probability of state | Return in state |
| Great | 25.0% | 60.00% |
| Good | 35.0% | 20.00% |
| Medium | 30.0% | 8.00% |
| Bad | ? | -27.00% |
| A. | Answer is not possible or not listed | |
| B. | 21.7% | |
| C. | 0.433 | |
| D. | 0.271 | |
| E. | 24.4% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Overcoming Debt Achieving Financial Freedom
Authors: Cindy Zuniga-Sanchez
1st Edition
1119902320, 978-1119902324
