question archive Consider the following probability distribution of returns on stock XYZ
Consider the following probability distribution of returns on stock XYZ
Subject:FinancePrice:2.86 Bought3
Consider the following probability distribution of returns on stock XYZ. What is the expected retum of stock XYZ2 (Enter your answer as a percentage rounded to 2 decimal places. For example enter 8.43%, instead of 0.0843) Return Probability 020 0.40 0.40 -10% 279 Your Answer: Answer units
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Calculating the Expected return of XYZ:-
| Prob (P) | Stock Return | (P)*Stock Return |
| 0.20 | -10.000 | -2.0000 |
| 0.40 | 11.000 | 4.4000 |
| 0.40 | 27.000 | 10.8000 |
| 1.00 | 13.2000 |
Expected return of XYZ is 13.20%
