Explore BrainMass

Explore BrainMass

    Calculating Rate of return with probability

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    5. Calculating Expected Return. Based on the following information, calculate the
    expected return.

    State of Probability of State Rate of Return
    Economy of Economy if State Occurs

    Recession .30 -.02
    Boom .70 .24

    © BrainMass Inc. brainmass.com June 3, 2020, 5:49 pm ad1c9bdddf

    Solution Preview

    Expected Return is defined as the summation of Probabilities multiplied by the corresponding ...

    Solution Summary

    The solution explains how to calculate rate of return given the probability of the returns