Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic...

Question

Question

Compute the expected return given these three economic states, their likelihoods, and the potential returns:

business finance

Answer 1

Answer #1

expected return=Respective return*Respective probability

=(0.2*35)+(0.6*10)+(0.2*-30)

which is equal to

=7%

Add a comment

Answer 2

Similar Homework Help Questions

Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round...

Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round your answer to 2 decimal places.) Economic State | Probability | Return Fast growth: 0.29 30 % Slow growth: 0.4 3 Recession: 0.30 –27
Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round...

Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round your answer to 1 decimal place). Economic State Probability Return Fast growth 0.3 40 % Slow growth 0.4 10 Recession 0.3 –25
Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round...

Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round your answer to 1 decimal place.) Economic State Probability Return Fast Growth 0.3 40% Slow Growth 0.4 10 Recession 0.3 -25

Expected Return Compute the expected return given these three economic states, their likelihoods, and the potential...

Expected Return Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth .3 31.5% Slow Growth .4 6.75% Recession .3 -2.75%
Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round...

Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round your answer to 2 decimal places.) Economic State Probability Return Fast growth 0.26 60 % Slow growth 0.37 27 Recession 0.37 –39
What is the expected return rate? Compute the expected return given these three economic states, their likelihoods, and...

What is the expected return rate? Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round your answer to 2 decimal places.) Return 30% Economic State Fast growth Slow growth Recession Probability 0.29 0.41 0.30 3 -27 Expected return

Compute the expected return of an asset given these three economic states, their likelihoods, and the...

Compute the expected return of an asset given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth 20.00% 30.00% Slow Growth 50.00% 6.00% Recession 30.00% -2.00% 8.40% 11.33% 12.65% 15.47%
Following are three economic states, their likelihoods, and the potential returns: Probability Economic State Return Fast...

Following are three economic states, their likelihoods, and the potential returns: Probability Economic State Return Fast growth Slow growth 0.20 301 0.58 5 0.22 -35 Recession Determine the standard deviation of the expected return. (Do not round intermediate calculations and round your answer to 2 decimal places.) Standard deviation
Following are three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast...

Following are three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.24 30 % Slow growth 0.36 7 Recession 0.40 –19 Determine the standard deviation of the expected return. (Do not round intermediate calculations and round your answer to 2 decimal places.)

Following are three economic states, their likelihoods, and the potential returns: Economic State Fast growth Slow...

Following are three economic states, their likelihoods, and the potential returns: Economic State Fast growth Slow growth Recession Probability 0.24 0.36 0.40 Return 36% 11 -28 Determine the standard deviation of the expected return. (Do not round intermediate decimal places.) Standard deviation