Solution-What is the expected return of each asset

What is the expected return of each asset

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Reference no: EM133050500

Question - An equity analyst has projected the expected returns on the shares of three publically traded corporations, Wassy Inc., Mappa Corp, and Fansa Ltd under four different economic conditions. The probabilities of each economic state were determined by the Central Bank and are shown below:

State of Economy	Probability of State	Return on WASSY in State	Return on MAPPA in State	Return on FANSA in State
Boom	.25	0.050	0.240	0.300
Stagnant	.35	0.050	0.040	0.060
Recession	.40	0.050	-0.100	-0.200

Required - Using the information in the above table answer the following questions:

a. What is the expected return of each asset?

b. What is the variance and standard deviation of each asset?

Reference no: EM133050500

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What is the expected return of each asset

Reference no: EM133050500

Reference no: EM133050500

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