Question
You recently purchased 100 shares of Diversified Industries, Inc.Diversified Industries is expected to earn 16 percent in a booming economy, 8 percent in a normal
You recently purchased 100 shares of Diversified Industries, Inc.Diversified Industries is expected to earn 16 percent in a booming economy, 8 percent in a normal economy, and lose 18 percent in a recessionary economy. There is a 5 percent probability of a boom and a 70 percent chance of a normal economy. What is your expected rate of return on your Diversified Industries' stock?
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Introduces Quantitative Finance
Authors: Paul Wilmott
2nd edition
470319585, 470319581, 978-0470319581
