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le Edit View p Window Help ADMN 210, Winter 2018, Section 2, MW 4 PM Lydia Stock

ID: 3043376 • Letter: L

Question

le Edit View p Window Help ADMN 210, Winter 2018, Section 2, MW 4 PM Lydia Stockar | 2/11/18 7:58 PM Homework: Homework Chapter 5 Score: 0 of 2 pts 3017C2 complete) Hw Score: 17.86%, 2.5 of 14 pts n5.1.7 You are trying to develop a strategy for investing in two different stocks. The anticipated annual retum for a to the right. Complete parts (a) through (c) below. Retuns 110 90 60 30 0.4 Moderate growth 150 80 190 170 0.3 Slow growth 0.2 Fast growth 53 a. Compute the expected returm for stock X and for stock Y The expected return for stock X is (Type an integer or a decimal.) nt

Explanation / Answer

a) Expected return for stock x = 0.1*-110+0.3*60+0.4*150+0.2*190 =

= 105

So, Expected return for stock x is 105