Question
You find that in a normal year, the S&P500 index gives a return of 12%. However, you think that there is a 40% probability of
You find that in a normal year, the S&P500 index gives a return of 12%. However, you think that there is a 40% probability of the economy going into recession next year. If that happens, you predict that the index return will be 2%. What is the expected return on the S&P500 next year?
Incorrect Question 6 0/ 1 pts You find that in a normal year, the S&P500 index gives a return of 12%. However, you think that there is a 40% probability of the economy going into recession next year. If that happens, you predict that the index return will be 2%. What is the expected return on the S&P500 next year
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Fundamentals of Futures and Options Markets
Authors: John C. Hull
8th edition
978-1292155036, 1292155035, 132993341, 978-0132993340
