question archive Suppose you have predicted the following returns for stocks X and Y in three possible states of nature
Suppose you have predicted the following returns for stocks X and Y in three possible states of nature
Subject:BusinessPrice:2.87 Bought7
Suppose you have predicted the following returns for stocks X and Y in three possible states of nature. What are the expected returns?
|
State |
Probability |
X |
Y |
|
Boom |
0.3 |
0.15 |
0.25 |
|
Normal |
0.5 |
0.10 |
0.20 |
|
Recession |
0.2 |
0.02 |
0.01 |
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