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You are interested in investing into 2 stocks, KODK and TSLA. The table below presents the returns of the stocks in different states and the
You are interested in investing into 2 stocks, KODK and TSLA. The table below presents the returns of the stocks in different states and the states corresponding probability.
Probability | KODKs Return next year | TSLAs Return next year |
.15 | -0.10 | 0.05 |
.15 | -0.20 | -0.05 |
.35 | 0.00 | 0.15 |
.35 | 0.15 | 0.30 |
How much is the expected rate of return if you invest into KODK?
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