Probabilities of expected return of a stock

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Reference no: EM13809145

Suppose someone tells you that the probabilities of expected return of a stock are as follows

Below Average: 20% Average: 70% Above Average: 20%

a) you should accept it because all probability numbers are positive

b) you should not accept it because the sum of these probabilities is more than 100%

c) you should not accept it because you need more information (i e how these numbers were determined)

d) you should accept it because the number appear to be reasonable

Reference no: EM13809145

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