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You are given the following information: Risk-free Rate = 2.5% / year. Return Return Future State for for - One year Probability Security Security

You are given the following information: Risk-free Rate = 2.5% / year. Return Return Future State for for - One year Probability Security Security from now A B Very Good 25.00% 25.00% -6.00% Good 25.00% 15.00% 10.00% Average 25.00% 10.00% 8.00% Poor 25.00% -8.00% 1.00%

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