Barbara is considering investing in a stock and is aware that the return on that
ID: 2702268 • Letter: B
Question
Barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment. Using the table of returns and probabilities below, find
What is the expected return on Barbara%u2019s investment? (Round answer to 3 decimal places, e.g. 0.076.)
Barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment. Using the table of returns and probabilities below, find
Probability Return Boom 0.2 25.00% Good 0.3 15.00% Level 0.2 10.00% Slump 0.3 -5.00% Barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment. Using the table of returns and probabilities below, find What is the expected return on Barbara%u2019s investment? (Round answer to 3 decimal places, e.g. 0.076.)Explanation / Answer
0.2x.25+0.3x.15+ 0.2x.10+0.3x -.05=0.1 answer-------------correct answer ================================================================================================================== please rate my answer with 5 stars
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