The table below shows the performance of two shares A and B under four different economic conditions and their associate
Posted: Mon Mar 21, 2022 4:37 pm
The table below shows the performance of two shares A and B
under four different economic conditions and their associated
probabilities of occurrence:
Economic Condition
Rate of return %
Rate of return %
Probabilities
Probabilities
A
B
A
B
Growth
18.50
16.50
0.25
0.45
Expansion
12.75
14.00
0.25
0.20
Stagnation
1.25
1.80
0.25
0.20
Recession
-6.00
-4.50
0.25
0.15
Calculate:
under four different economic conditions and their associated
probabilities of occurrence:
Economic Condition
Rate of return %
Rate of return %
Probabilities
Probabilities
A
B
A
B
Growth
18.50
16.50
0.25
0.45
Expansion
12.75
14.00
0.25
0.20
Stagnation
1.25
1.80
0.25
0.20
Recession
-6.00
-4.50
0.25
0.15
Calculate: