You are considering to invest in the following stock: it is expected to earn 20% in a booming economy, 4% in a normal ec
Posted: Tue Jan 18, 2022 12:59 pm
You are considering to invest in the following stock: it is
expected to earn 20% in a booming economy, 4% in a normal economy
and -2% in a recession. The probability of a boom is 25%, the
probability of a normal economy is 69%, and probability of a
recession is 6%. What is the expected rate of return on this
stock?(Format your answer to percent and round answers to two
decimals without %, for example, for answer 0.43%, enter 0.43
only)
expected to earn 20% in a booming economy, 4% in a normal economy
and -2% in a recession. The probability of a boom is 25%, the
probability of a normal economy is 69%, and probability of a
recession is 6%. What is the expected rate of return on this
stock?(Format your answer to percent and round answers to two
decimals without %, for example, for answer 0.43%, enter 0.43
only)