Question
What is the expected return on an asset that is expected to have returns of -10%, 8%, and 20% when the economy is in boom,
What is the expected return on an asset that is expected to have returns of -10%, 8%, and 20% when the economy is in boom, normal, and recession states, respectively? The probabilities of boom, normal, and recession states happening are 30%, 50%, and 20%, respectively.
A. 8.00%
B. 2.67%
C. 5.00%
D. 6.00%
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Digital Business And Electronic Commerce
Authors: Bernd W Wirtz
1st Edition
3030634817, 9783030634810
