53 Tucker Corporation's manager believes that the economic environment during the next year can be good, normal, or bad, and he thinks that a stock's returns will have the following probability distribution shown below. Good .50 15% Normal .20 0% Bad .30 -5% Calculate the expected rate of return Group of answer choices 3.33% 9.00% 6.00% 10.00%
53 Tucker Corporation's manager believes that the economic environment during the next year can be good, normal, or bad, and he thinks that a stock's returns will have the following probability distribution shown below. Good .50 15% Normal .20 0% Bad .30 -5% Calculate the expected rate of return Group of answer choices 3.33% 9.00% 6.00% 10.00%
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 17P
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Question
53
Tucker Corporation's manager believes that the economic environment during the next year can be good, normal, or bad, and he thinks that a stock's returns will have the following probability distribution shown below.
Good |
.50 |
15% |
Normal |
.20 |
0% |
Bad |
.30 |
-5% |
Calculate the expected
Group of answer choices
3.33%
9.00%
6.00%
10.00%
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