Solution-Find out the expected return of stock a

Find out the expected return of stock a

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Suppose there are two potential states of the economy for next year: boom and bust. The probability of a boom state is 40%, and that of a bust state is 60%. The return of Stock A will be 12% in a boom state and 2% in a bust state. Find out the expected return of Stock A.

Reference no: EM132509553

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Find out the expected return of stock a

Reference no: EM132509553

Reference no: EM132509553

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