Use the following information to calculate your company's expected return. Round to two decimal places. State...
Use the following information to calculate your company's expected return. Round to two decimal places.
| State |
Probability |
Return |
| Boom |
20% |
0.12 |
| Normal |
60% |
0.14 |
| Recession |
20% |
-0.15 |
Homework Answers
Expected return = 0.2*(0.12) + 0.6*(0.14) + 0.2*(-0.15)
Expected return = 0.024 + 0.084 - 0.03
Expected return = 0.078 or 7.80%
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Use the following
information to calculate your company's expected return. Round to
two decimal places.
State...
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round intermediate calculations; enter your answers as a percent
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