Solution-Determine the rate of return of abc if economy

Determine the rate of return of abc if economy turns normal

Reference no: EM133178372

Question - An analyst is studying the movement of the stock ABC. His research and came up with a different rates of return for ABC, 25% for strong and 10% for weak economic scenarios. Based on the latest economic outlook, the probability of having a strong, normal, and weak economy, are 30%, 50%, and 20%, respectively. The total expected return of ABC stock is 17% considering the various probabilities. Determine the rate of return of ABC if the economy turns normal.

Reference no: EM133178372

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Determine the rate of return of abc if economy turns normal

Reference no: EM133178372

Reference no: EM133178372

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